The Venezuelan economy is doing so poorly that three dozen 747 airplanes had to fly in much-needed cash.
Inflation will reach 720 percent this year in the oil rich country, according to the International Monetary Fund. While inflation is reaching an unprecedented rate, Venezuelan currency printing firms are unable to contend with the amount of money needed by the government. It is increasingly common for countries to manufacture currency abroad and have it managed by private companies with expertise in anti-counterfeiting technology.
Venezuelan inflation reached the historic rate of 275 percent in 2015. The OPEC member is contending with low oil prices and an insufficiently diverse economy. The country’s oil production decreased by 25 percent from 1999 to 2013, according to The Independent.
Government-owned oil company Petróleos de Venezuela, S.A. (PDVSA) manages Venezuela’s oil production and has been suffering from chronic mismanagement for several years. In 2003, almost 20,000 experienced employees of the oil firm were fired after they went on strike and protested President Hugo Chavez’s policies. While oil production has decreased, hiring at PDVSA has steadily risen.
As of March 2013 when former President Hugo Chavez died, the national oil firm employs over 110,000 people, and often times loyalty to the ruling Socialist Party is favored over experience. Unsurprisingly, Venezuela’s oil sector has been experiencing a brain drain as the best and the brightest have fled their country.
On the Venezuelan black market, 1,000 bolivars are now worth only $1, according to the Wall Street Journal. However, the Socialist government of President Nicolas Maduro continues to insist through the official exchange rate that 1,000 bolivars amount to $159.
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