Venezuelans confused over new bills under economic overhaul

But many economists say they fear the measures will bring more misery to the once-wealthy OPEC nation.

As the new money went into use, banks capped customers daily ATM withdrawals at 10 bolivars — equal to roughly 15 cents on the commonly used black market.

At that rate it would take seven days to buy a 2 litre bottle of Coca Cola, though customers can use their debit cards to make much larger purchases electronically.

Venezuela’s largest bill was 100,000 bolivars — worth less than $3 cents — under the former currency. The new bills top out at 500 bolivars — currently worth about $7.50.

Inflation this year could top 1 million per cent, according to economists at the International Monetary Fund.

One bank passed out conversion charts to help customers, while other customers brought hand-held calculators, unsure how much basic goods like eggs and rice will costs in the new currency.

“We have to be on the look-out,” said Yulima Rivas at an ATM in Maracaibo. “If we make a mistake, it’s like being robbed.”

Opposition politicians had called for a work stoppage and protests on Tuesday across Venezuela, drawing on tension and nerves caused by the new economic plan.

Despite the call, the streets appear calm, while businesses in Caracas appeared slow to reopen following a bank holiday a day earlier to allow for the conversion.

Maduro’s socialist party called its own rally on Tuesday in a show of support for the embattled president, the subject of a failed drone attack in early August.

Caracas resident Carlos Espana proudly held crisp bolivar notes he’d taken from the bank, but he worried that the government’s plans would spur faster inflation.

“More confusion. Higher costs,” he said, noting that he would have to stand in line at an ATM for two days to buy a single empanada.

The Associated Press

by Canadian Press

Venezuelans confused over new bills under economic overhaul

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