Cash in Venezuela is limited to five dollars a day

Cash in Venezuela is limited to five dollars a day

Venezuelan authorities have banned public and private banks to lend through branches and ATMs more than 10 thousand bolivars (about five dollars) a day. This writes the newspaper El Nacional.

The restrictions will take effect from 1 December, but the population and legal entities have difficulty obtaining funds from mid-November, the newspaper notes.

The country’s Central Bank took such a decision due to lack of cash. Over the last month inflow of cash in public and private financial institutions decreased by 50 percent.

The controller waits for receipt of new banknotes of large denominations, which should be included in circulation from 15 December.

The first will be released banknotes in denominations of 200 and 500 bolĂ­vares, then one, five, 10 and 20 thousand bolivars.

October 24, Venezuelan President Nicolas Maduro said that he intends to invite US to the next meeting of the Organization of countries-exporters of oil (OPEC) and to expand the cartel, turning it into the new oil Alliance.

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Venezuela actively supports the initiative of OPEC to limit oil production in the hope of the rising cost of fuel.

Venezuela suffered seriously from the decline in oil prices in 2014.

According to IMF forecasts, inflation in the country next year would amount to 1640 percent, and this will reach 480 percent.

To save energy, the local authorities reduced the work week of state employees. There is a shortage of food and medicine. In addition, the government was forced to open the border with neighboring Colombia, to the inhabitants of the country could buy goods in the neighboring country.