Venezuela introduces new currency with 6 fewer zeros

A new currency with six fewer zeros is debuting in Venezuela, whose currency has been made nearly worthless by years of the world’s worst inflation

CARACAS, Venezuela -- A new currency with six fewer zeros debuts Friday in Venezuela, whose currency has been made nearly worthless by years of the world’s worst inflation.

The highest denomination until now was a 1 million bolivar bill that was worth a little less than a quarter as of Thursday. The new currency tops out at 100 bolivars, a little less than $25 — until inflation starts to eat away at that as well.

The million-to-1 change for the bolivar is intended to ease both cash transactions and bookkeeping calculations in bolivars that now require juggling almost endless strings of zeros.

“The most important and fundamental reason is that the payment systems are already collapsed because the number of digits make the payment systems and doing the math practically unmanageable,” said Jose Guerra, an economics professor at the Central University of Venezuela. “These debit card payment processing systems or an accounting system for companies... are not intended for hyperinflation, but for a normal economy.”