Wednesday, December 14, 2016

Venezuela Now Facing A Run On The Banks


Fusion: Venezuelans fight to protect their savings as government pulls bills from circulation

CARACAS— Venezuelans are rushing to the banks this week in a desperate attempt to protect their savings from the government’s latest spasm of reckless financial policymaking.

On Tuesday morning thousands of people across Venezuela played hooky from work to line-up outside banks and deposit bundles of cash into their savings accounts after the government gave everyone a 72-hour countdown to turn in all their 100 bolivar notes before they’re removed from circulation.

“I’ve been saving for so long, withdrawing money every week and for what? Nothing!” complained José Orozco, who was holding a backpack full of money as he stood in line.

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More News On Venezuela's Currency Crisis

Venezuelan Rush to Unload Bank Notes Before Deadline -- AP
Venezuela Won’t Exchange All Bank Notes in Currency Swap -- Bloomberg
Venezuela prepares to scrap its virtually worthless largest bank note and replace with larger ones as people queue an hour at a time to withdraw huge bundles of cash -- Daily Mail
Venezuela shuts border with Colombia as cash crisis escalates -- CNN
Entering a ‘world of economic chaos,’ Venezuela struggles with hyperinflation -- Miami Herald
Venezuela gripped by 'total chaos' as largest currency banknote withdrawn -- CBC/Reuters
How to fight hyperinflation in Venezuela? By seizing massive amounts of cash -- Washington Post

1 comment:

Anonymous said...

This is actually the opposite of a run on banks, which would be everyone trying to get their money out at once. These people are lining up for deposits.

Still a hugely disruptive, incredibly stupid thing for the government to do (and after they watched India screw up the same way?!), but not a "bank run".