These two countries Venezuela and Zimbabwe are classic cases of monetary mismanagement of this century.
In a recent article, Venezuela now weighs currency rather than count the same.
At a delicatessen counter in eastern Caracas, Humberto Gonzalez removes slices of salty white cheese from his scale and replaces them with a stack of bolivar notes handed over by his customer. The currency is so devalued and each purchase requires so many bills that instead of counting, he weighs them.
“It’s sad,” Gonzalez says. “At this point, I think the cheese is worth more.”
It’s also one of the clearest signs yet that hyperinflation could be taking hold in a country that refuses to publish consumer-price data on a regular basis. Cash-weighing isn’t seen everywhere but is increasing, echoing scenes from some of the past century’s most-chaotic hyperinflation episodes: Post-World War I Germany, Yugoslavia in the 1990s and Zimbabwe a decade ago.
Zimbabwe on the other hand, plans to introduce a new currency. It will be backed by a bond and trade at par with US Dollar:
Zimbabwe’s president has formalized a law allowing the introduction of a new currency this month. The new bond notes, backed by a $200 million Afreximbank bond facility, will be regarded as legal tender for all local transactions.