People queue outside Venezuela's Central Bank (BCV) in Caracas in an attempt to change 100 bolivar notes, yesterday.
Caracas: Venezuela became a country without cash yesterday. As the country’s most widely used banknote went out of circulation, the higher-denomination bills that were supposed to replace 100-bolivar note had not yet arrived at banks or ATMs. In the capital, people were relying on credit cards and bank transfers, or avoiding making purchases altogether.
President Nicolas Maduro made a surprise announcement on Sunday that the 100-bolivar note would go out of circulation by the week’s end amid world’s highest inflation. He also temporarily closed the border with Colombia and Brazil, and yesterday extended the border closure for another 72 hours.
Maduro said the closure was needed to thwart “mafias” who hoard bolivars.
The embattled socialist president held up a new 500 bolivar bill on his television show yesterday, promising the new banknotes would soon be in wide circulation and offering to temporarily cut sales tax for credit card transactions. But yesterday, ATMs were still issuing only the now-worthless 100-bolivar notes.
Venezuelans waited in lines hundreds of people long all week to deposit their cash. Shopkeepers put up signs saying 100-bolivar bills would no longer be accepted. That meant many people looking to buy groceries or take taxis were out of luck, as banks had run out of lower-denomination bills like 50 and 20-bolivar notes, and had not yet received the higher-denomination replacements.
