Samson » October 24th, 2021
Venezuela adjusts its currency with six zeros
24th October, 2021
Venezuelans have woken up to an adjustment in their currency, the bolivar, to remove six zeros from it, in a measure that would facilitate daily transactions in this country facing hyperinflation, the highest in the world, and this is the third time that the value of the bolivar has been adjusted within 13 years. Since 2008, fourteen zeros have been omitted. According to AFP.
“I had no difficulty shopping this morning. The new prices were displayed on top of the old ones. Plus the price in dollars,” said Josefina Galindo, a cleaner who went shopping in the upscale Chacao de Caracas neighborhood on her way to work, noting that the price (in dollars) had not changed.
“I paid by credit card,” she said. Some of the (card payment) platforms stopped working, but mine was working.” Before that, she had taken the bus from her popular Koç district to Chacao and paid… at the old price and in the ex-bolívar.
She said, “I was apprehensive when I saw the queue, but I paid a thousand bolivars (25 cents of dollars) as usual, noting that the collector was calling out ‘alif as usual’, but the collector pointed out that the price of the ticket will rise from 1 to 1.5 bolivars on Monday ( 25 to 37.5 dollar cents).
New cash denominations
The central bank will issue new banknotes of five, 10, 20, 50 and 100 bolivars and a coin of one bolivar, but they are not in circulation after Friday.
A hundred bolivars is equivalent to 24 dollars, and some stores were not yet ready for this adjustment in the morning, as the parking garage in Chacao accepted payment only in dollars, but most bakeries and cafes made the adjustment, and a worker at a bakery in the city center said, “Everything is going well until right Now”.
Before adjusting the value of the currency, the price of a loaf of bread was equivalent to seven million bolivars, in a country that was considered one of the richest countries in South America thanks to its oil. But also because of mismanagement and political crisis.
According to a recent university study, 94.5% of families live below the poverty line ($1.9 a day). According to the study, the population of Venezuela is now about 28.8 million, which means that about 5 million people have left the country due to the crisis. economic and political.
The new bolivar will be equivalent to 100,000 billion bolivars in 2007, reflecting the staggering decline of the Venezuelan currency.
This, of course, led to a lack of purchasing power for wages. “We receive our salary every two weeks and it is equivalent to less than three dollars,” said Marles Guerrero, a 43-year-old teacher who earns millions of bolivars. Eco Analytica studies about 1600% in 2021, more than two-thirds of transactions in the country are conducted in dollars, the currency of the United States, the archenemy of the regime. Individuals cost about $220, credit cards and bank transfers are used instead of cash exchanges, and daily payments in bolivars have become very confusing.
To give a tip to a worker who parks the car in the garage of a restaurant, the card must be paid, as the service provider receives a receipt instead of cash, and bus stops have been turned into exchange offices in the open, to face the lack of liquidity, in order to ride this means of transport in which payment is only accepted in bolivars, he said. William Hernandez, 56-year-old driver “We exchange a dollar for four million bolivars. The price of a ticket (the bus) is two million bolivars.”
On the street, children play with bundles of real banknotes that have long been of little value, the government invoking international sanctions imposed since 2019, especially by Washington, which has been seeking to oust President Nicolas Maduro since he was re-elected for a second term in 2018 in elections The opposition rejected its findings.
Negotiations are underway between the Chavez government led by Socialist President Maduro and the opposition led by Juan Guaido, whom about fifty countries consider, including the United States, as interim president of the country, and Venezuela, the former oil giant, produced last February, according to the figures of the Organization of Petroleum Exporting Countries “OPEC”, 520 thousand. barrels of oil per day, far less than the 3 million barrels it was producing per day in 2013, and while some Caracas residents fear the new currency adjustment will reduce purchasing power, others have welcomed the simplification of dealings, including accountant Rodrigo Bermúdez, commenting that “It is a relief…the number of digits makes any transaction very tiring,” he said, pointing to an invoice with too many zeros to comprehend.
Three quarters of Venezuelans live in extreme poverty
A study published on Wednesday showed that three quarters of Venezuelans live in extreme poverty due to the unprecedented economic crisis in which their country is floundering after it was a rich producer of oil. She lives in extreme poverty, meaning that her income does not allow her to cover her food needs, and 94.5% of families live below the poverty line ($1.9 per day). According to AFP.
“We have reached the extreme poverty limit,” said sociologist Luis Pedro Spain, during his presentation of the study, while extreme poverty continues to increase in the country. According to the study, in 2019-2020, the extreme poverty rate in the country reached 67.7%, while the poverty rate reached 91.5%. According to the study, the population of Venezuela is now about 28.8 million, which means that about 5 million people have left the country due to the economic and political crisis it is experiencing.
And Venezuela, which was considered one of the richest countries in South America thanks to its oil, has witnessed a decline in its GDP by 80% since 2013, mainly due to the decline in its oil production and the decline in black gold prices, but also due to mismanagement and political crisis.
The country is also witnessing hyperinflation with the collapse of the value of the local currency against the dollar, and the data of the study strongly contradicts the official figures submitted to Parliament, which say that 17% of people live below the poverty line and only 4% live in extreme poverty, and according to the study, only 50% of Venezuelans of working age are currently employed. Women are the most affected by unemployment, as the percentage of working women is only 33%.
The study confirms that in light of the gasoline shortage and the restrictions imposed to combat the Covid-19 pandemic, the “transportation crisis” is especially affecting the population looking for work. The sociologist warned that “the costs of workers going to work are starting to become higher than the wages they receive.”
In Venezuela, the minimum wage, with food vouchers received by many employees, barely exceeds $2 a month, a pittance that does not cover transportation costs, even though the average wage in the private sector is around $50 a month.
According to the study, only 65% of 11 million young people of school age (3 to 24 years old) are enrolled in educational centers in the country, a decrease of 5%, and 17% of those aged 16 to 24 are enrolled in university. The study was conducted between February February and April 2021 on a sample of 17,402 households residing in 22 out of the country’s 24 states. LINK
Source: Dinar Recaps
MilitiaMan » October 24th, 2021
Now Iraq is clearly telling us they have digital currency and it will be tracked to the penny. I find this article (See Below) to be very timely and to be expected. They took out the 1,000 – 10,000 notes and in the past we witnessed them destroying 25k notes in a filmed interview on the matter
By them taking out the notes, they’ll need to have replacements, hence, the need for an adjustment to the new digitized currency is looking to be needed more now than ever before.
In my view they must be in a hurry now.. Lets see what they do next. I suspect that with them having experience in digital currency, as noted by the recent article, a flip of the switch may all that be needed .. lol ~ MM
Al-Kazemi’s advisor comments on a report on “digital currencies” and warns against one of them
24th October, 2021
Adviser to the Iraqi Prime Minister for Financial Affairs Mazhar Muhammad Salih revealed on Sunday that there are two types of “digital currencies” globally, referring to the “official” of one of them.
Shafak News Agency, through its report, published yesterday, Saturday, provided details of a new “digital currency” that entered the regions of western Iraq, the price of which reached more than 24,000 thousand US dollars, amid an unprecedented turnout of the population.
Saleh told Shafaq News Agency, “There are two types of digital currencies, one of which is called cryptocurrency,” noting that “it is a system outside the control of central banks and financial markets, and it is traded through its subscribers and founders, so that there is a commodity exchange and coverage of transactions outside the control of international financial supervision.”
He added that these cryptocurrencies are considered “illegal, in some countries because of economic freedom, as some accept them and others reject them.” He warned that “these currencies are closer to hierarchical companies that give big money, and then collapse after that because they do not have an economic basis, but rather are financial speculation,” explaining that “it is like a bubble and its risks are many.”
Regarding “official digital currencies”, Saleh stated, “The other world is heading to global digital currencies issued by global central banks, which are sought to be established by 3 global central banks, including the European Central Bank (the euro), the United States (the dollar) and China for its currency (the yuan).”
He pointed out that “these digital currencies are important because they will reduce the cost of transactions because the free cash in circulation has a problem such as movement and storage, and therefore this cash will be a number controlled by the central bank.”
He added, “This type of digital currency will have a high level of transparency, as the central bank will be able to know the dinar that comes out from where, and goes to where, meaning that it has the ability to monitor financial behavior up to a penny.” He pointed out that “these digital currencies at the same time will lose the privacy of transactions with their secrets, which is a kind of domination and human control, which is the closest thing known to the globalization of the digital financial system.”
He stressed that “this globalization is considered dangerous because it will control not only companies, but even the individual, and it is part of the subjugation of the countries that deal in this currency, and the movements of people will all be known despite its transparency, but it is mandatory, as it is digital to preserve people’s rights, except it will be under financial supervision by central banks.”
Shafak News Agency, earlier, investigated a “digital currency” that entered the Anbar Governorate in western Iraq, and spread widely amid the people’s desire to invest in it, amid religious fatwas that declared its sanctity and warnings from specialists.
Al-Kazemi’s advisor comments on a report on “digital currencies” and warns against one of them LINK
G7 countries agree common principles on digital commerce
21st October, 2021
Britain announced today, Friday, after a meeting of trade ministers in the Group of Seven countries, that the countries of the wealthy bloc agreed on a set of principles governing the use of cross-border data and digital trade.
Britain explained that the G7 countries oppose digital protectionism and authoritarianism, “and today we have adopted the principles of G7 digital trade, which will guide the G7’s approach to digital trade,” according to the Middle East News Agency.
The agreement lays a middle ground between the heavily regulated data protection systems of European countries and the more open approach of the United States.
She added that the principles cover open digital markets, cross-border information flows, and protections for workers, consumers and businesses.
It also covers digital trade systems and fair and inclusive global governance.
“We must address undue obstacles to transcontinental data flows as we continue to address privacy, data protection, and protection of intellectual property rights,” said a document accompanying the meeting.
“This agreement is a real breakthrough that came as a result of hard diplomatic effort,” said a British official familiar with the deal.
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 13, 2021
Contact: Alexandra LaManna;
READOUT: Secretary of the Treasury Janet L. Yellen’s Meeting with G7 Finance Ministers and Central Bank Governors
WASHINGTON – Secretary of the Treasury Janet L. Yellen participated in an in-person meeting of the G7 Finance Ministers and Central Bank Governors today. G7 Finance Ministers applauded the historic deal between 136-nations that will reshape the international tax system and equip the global economy to meet the needs of the 21st century.
Along with her counterparts, Secretary Yellen endorsed the G7 Public Policy Principles for Retail Central Bank Digital Currencies (link) and the G7 issued an accompanying statement on digital payments (link). She also expressed her strong support for efforts to channel Special Drawing Rights (SDRs) to further support vulnerable economies, including the rapid establishment of a new trust fund at the IMF to support economic transitions related to pandemic preparedness and climate change. G7 Finance Ministers also discussed the macroeconomic implications of climate change and the importance of resilient global supply chains.
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 21, 2021
Contact: Treasury Public Affairs;
FATF Works to Strengthen Financial Transparency, Combat Misuse of Virtual Assets
FATF Approves Public Consultation of Revisions to Beneficial Ownership Standards and Updated Guidance on Virtual Assets
WASHINGTON — The Financial Action Task Force (FATF) concluded its October plenary today, the sixth session since the start of the ongoing COVID-19 pandemic. With hybrid participation both virtually and in-person in Paris, FATF advanced its core work on virtual assets, beneficial ownership transparency, and illicit finance risks.
“The United States welcomes the significant work by the FATF to enhance beneficial ownership transparency and provide clear standards and guidance for the virtual asset industry,” said Secretary of the Treasury Janet L. Yellen. “The FATF’s work will continue to strengthen global action against illicit finance.”
Virtual Assets Guidance
The FATF approved for publication an updated version of its Guidance on a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers. The guidance is intended to help jurisdictions and the private sector to implement the FATF’s standards on the virtual assets sector, which were revised in 2018. The FATF’s Virtual Assets Contact Group, the body that undertook this revision and which is co-chaired by the United States and Japan, will now focus its efforts to promote implementation of the standards.
Proposed Changes to Beneficial Ownership Standards
The FATF agreed to publish for public consultation proposed revisions to Recommendation 24, which sets the FATF standard regarding beneficial ownership transparency for legal persons. These proposed revisions are intended to improve the quality of beneficial ownership information available to law enforcement and other authorities in a timely manner, facilitate international cooperation, and improve transparency around public procurement to combat corruption. The U.S. strongly supports these enhancements to Recommendation 24 to increase beneficial ownership transparency.
Iraq requests removing its name from the high-risk countries
The mission of the Republic of Iraq to the European Union announced today, Wednesday, that Iraq has met all the FATF criteria for removing its name from the list of high-risk countries.
The 5 and (to) 10 thousand dinars denominations disappeared from the ATMs
Saturday 23 October 2021
Baghdad: Mustafa Al-Hashemi
Recently, there have been cases that the citizen was not familiar with, since the spread of ATMs throughout Iraq, represented by the disappearance of small and medium groups (from 1000 to 10 thousand dinars), which may bring back to the scene the scene of mistrust between the public and private banks, specifically, because of The latter’s failure to provide all cash denominations in its ATMs.
Citizen B says: I (employee) “When I receive a message or a notification on my phone that my salary has been launched, I immediately go to the nearest ATM to withdraw the salary for the purpose of fulfilling my financial obligations that require cash (cash).
i added. To “Al-Sabah” that “the ATMs of the bank to which I settled my salary, are devoid of small and medium cash groups (1000 to 10 thousand dinars), and I do not know the reason, although withdrawing them as liquidity may differentiate among some who complain of the deterioration of their living conditions.”
The information on the digital transformation that is upon is everywhere. The amount of top level work completed now is main stream and straight from the highest in Finance in the world. They are openly talking about Retail Digital Currencies, digital cross border payments, etc..
With them even showing that the 1,000 – 10,000 notes are disappeared from the ATMs is very telling.
With the UST telling us the G-20 have 136 countries in agreement on digital International Taxation and a flat tax, the cross boarder data and digital trade noted by the G-7 today, it is not surprising that they would be adjusting for the NSCNs to replace those the 1,000 – 10,000s.
The need for them will diminish with a new international exchange rate applied. It doesn’t take long to replenish ATMS. The goal is not to worry the citizens, the goal is to make them happy with the new purchase power that the new smaller notes will bring.
Notice they use the words INCLUSIVE GLOBAL GOVERNANCE!!! That is because the digital transformation is approved and on stage for all to see.. IMO there is nothing to stop it now.. Lets see what they show us next.. ~ MM
” It also covers digital trade systems and fair and inclusive global governance.”
Frometad » October 24th, 2021
Thank you very much for your analysis MM. Always appreciated.
MilitiaMan » October 24th, 2021
Your very welcome.. There is reason to be excited! We have been talking about the digital transformation for some time now.
Today, even Salih has things to say about it. The evidence is quite clear they have every intention to be digitized, down to their currency.
It is no secret anymore that the world is going to be operating at a far more advance pace then many ever thought could take place now, or, effectively ever. Yet, the UST, G-7, G-20, etc, are showing us that is not the case and with 136+ countries being on board with it too.
So, what can we expect going forward? Global interconnectivity.
We have been told by the CBI / AMF that they have successfully cleared the Euro with the Jordanian Dinar (JOD).
My understanding is that success story was not the only story to be successful, there were and will be more. The communication system will require the cross border payments to be transparent, fast and secure. And it is.
So, now we just have to watch and see how long they can last with out 1,000 – 10,000 k notes, let alone 25k notes.
Fairly sure they told us they have been paying citizens electronically and as recent as this past week, so if everyone that gets electronic payments now will be ready for the switch over to having less cash on hand. I’ll be looking to have a little more.. lol ~ MM
Source: Dinar Recaps
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