© Miraflores Palace / Reuters
CNBC/Reuters: Maduro orders 96 percent devaluation in hyperinflation-stricken Venezuela
* "I want the country to recover and I have the formula. Trust me," Maduro said in a nighttime speech broadcast on state television.
* Economists expressed doubts that Venezuela's cash-strapped government, which faces U.S. sanctions and has defaulted on its bondholders, would succeed.
Venezuela's president Nicolas Maduro announced on Friday a single exchange rate pegged to his socialist governments petro cryptocurrency, effectively devaluing by 96 percent in a move economists said would fan hyperinflation in the chaotic country.
In one of the biggest economic overhauls of Maduro's five-year government, the former bus driver and union leader also said he would hike the minimum wage by over 3,000 percent, boost the corporate tax rate, and increase highly-subsidized gas prices in coming weeks.
"I want the country to recover and I have the formula. Trust me," Maduro said in a nighttime speech broadcast on state television.
But economists expressed doubts that Venezuela's cash-strapped government, which faces U.S. sanctions and has defaulted on its bondholders, would succeed.
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Update: Venezuelan shopkeepers alarmed by Maduro's latest economic moves (Reuters).
WNU Editor: Devalue the currency by 96%. Pegged the bolivar currency to the government’s petro cryptocurrency that no one understands let alone trusts. Increase the minimum wage by over 6,000 percent. Boost the corporate tax rate to what is essentially 100%. And increase the price for highly-subsidized gas prices in the coming weeks. I have one word to describe this .... insanity. If I was living in Venezuela .... after today I will be trying my best to organize a revolution.
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In a crash there is no border.
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