Venezuela: what does it mean to live in a country with hyperinflation? Now in its fifth year of recession, critics blame both government incompetence and corruption.
ADVERTISEMENTThe drama of Venezuela’s political conflict has brought its worst economic crisis in decades.
Venezuela's currency, the bolivar, is being hit by hyperinflation that has resulted in severe shortages of basic goods like food and medicine.
The inflation rate in the country is expected to hit 13,000% in 2018 as it recovers from a 2,600% inflation rate from the past year.
Up to 40,000 Venezuelans cross daily into Cúcuta on Colombian border. Most of them are crossing the Simón Bolívar bridge: fleeing their country to find food, medicine and a more stable economy.
"In Venezuela, you cannot earn in Bolivares and hope to save money because the currency devaluates constantly.
What 200,000 Bolivares are worth today, is not what they will be tomorrow. It will be the equivalent of 50,000 in terms of spending power” explains a young Venezuelan preparing to cross the border.
According to an estimate by the country's National Assembly, Venezuela has the highest inflation rate in the world.
Food items have international price tags in Venezuela. Prices depend on the American dollar, even though Venezuelans earn Bolivares.
"Our salary is not based on the dollar, is not calculated on the basis of the international market. This is the crux of the crisis.
Inflation is so high that the market is forced to keep the prices at an international standard so as not to lose money, but our salary is not at that level", says another Venezuelan.
Watch Euronews' Monica Pinna's video above and read the full report here.