The Venezuelan government will introduce a new currency known as the Sovereign Bolivar (BsS) on 20 August in an effort to contain inflation, which the International Monetary Fund expects at 1 million per cent by year-end 2018.
The BsS will be pegged to the Petro, a cryptocurrency initiative that has neither been properly implemented nor well-received by the markets and that is pegged to the price of a Venezuelan oil barrel (USD64.42). Its launching was confirmed on 17 August alongside economic measures seeking to stabilise the economy (expected to slow down by 17.2% in 2018, according to IHS Markit).
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