Here is my latest video going over this article:
Hi everyone, Nick here, and as you can probably tell, there have been a number of currencies that have, since November, gone through significant changes.
- Venezuela plans to pull their 100 Bs.F (Bolivar) banknotes, which represents 46% of their circulating currency. According to the official exchange rate, it’s worth 15 cents US, however, the black market rate has it worth just 2 cents, and even that number is expected to drop.
- India pulled 86% of it’s cash out of circulation by removing 500 and 1000 rupee notes, with no warning.
- Venezuela Bolivar Loses 45% Value in Just November 2016. Black market value of US Dollar skyrockets.
- Venezuela pulls their 100 Boliva banknote just as India pulled their 500 and 1000 rupee banknotes.
- Venezuela begins printing new 20,000 banknotes as their currency and economy hyper-inflates like Zimbabwe’s has.
- Zimbabwe releases bond notes in November 2016.
- Withdrawal limits put on Zimbabwe bond Notes
- US Dollar gains nearly 20% against Pound as of December 2016 following Brexit vote on June 23, 2016, British Pound at lowest level in 31 years
- Iran plans to revalue, rename rial currency Toman
- Aussie Dollar Plunges As Inflation Slumps To Record Low
Last Updated On: December 22, 2016
By: Nick Giammarino
Global Currency Reset Newsletter –
The ‘strong bolivar’ has lost 45% of its value this month
Rapid devaluation to stoke inflation already in triple digits
Venezuela’s currency – the so-called “strong bolivar” – is weakening beyond levels that analysts had forecast just a few weeks ago as an expanding money supply chases a limited amount of U.S. dollars.
The currency has lost 45 percent of its value so far this month to trade at 2,753 bolivars per U.S. dollar on Thursday, according to dolartoday.com, a widely-watched website that tracks the exchange rate in Caracas. That’s the biggest monthly decline ever, according to data compiled by Bloomberg.
Inflation in the country will likely rise to 400 percent in 2016, according to the median estimate of 13 analysts who responded to a Bloomberg survey. Individual responses ranged from 257 percent to 1,500 percent.
Venezuela’s money supply has risen 127 percent over the past year, according to the latest data available from the Central Bank in Caracas and compiled by Bloomberg.
Venezuela’s Currency Just Had the Biggest Monthly Collapse Ever
Venezuela’s Currency Is Collapsing on the Black Market Again
Venezuela’s currency is so weak, shopkeepers have taken to weighing it. In 2015, the black-market bolivar frequently fell more than 10 percent a month. In the six months through September the black-market currency actually appreciated, even as prices for unregulated goods began to skyrocket. The calm ended in October, when the bolivar lost almost a third of its value compared to the U.S. dollar in a matter of weeks.
Actual exchange rate against US Dollar: 1 USD =9.97480 VEF basically, one United States Dollar equals about 10 bolivars.
Black Market rate:
Congratulations To Venezuela: Bolivar Notes Are Now Worth Less Than It Costs To Print Them
Except how much is a 100 Bolivar note worth these days? At the real, free market (for which read black market) rate of 1,100 or so to $1 US, that’s some 9 cents (9.09 for the accurately inclined). Which is alarmingly close to our presumed production cost, isn’t it? Rather below it in fact. Which means that we’ve got the amusing if alarming thought that if Venezuela were in fact to order more 100 Bolivar notes then they would be, because they have to use the international firms, swapping widely usable US dollars for very much more restricted use Venezuelan bolivars of less actual value.
Venezuela will print a 20,000 bolivar note after hyperinflation turned its currency into worthless pieces of paper.
The central bank said Sunday it will issue six new bills starting Dec. 15 worth between 500 and 20,000 bolivars. That’s 200 times the biggest note currently in circulation — the 100 bolivar.
Hyperinflation means very little can be bought with 100 bolivars, which is officially worth 15 U.S. cents, or just 2 cents based on widely-used unofficial exchange rates.
The currency collapse means people are having to carry their money around in bags, rather than wallets.
Inflation in Venezuela is expected to rise to nearly 500% this year and to a whopping 1,660% in 2017, according to the International Monetary Fund.
In November alone, the bolivar lost more than half of its value. One U.S. dollar buys 4,400 bolivars on Monday, according to Dollartoday.com.
Residents steal from shops Ciudad Bolivar Venezuela – there was a video but it was censored. Below is an alternative video, December 19, 2016:
Zimbabwe Bond Notes
Below is a new picture (November 2016) of the $2 Zimbabwe Bond Note Currency, click the picture, it will open in a new window so you can view it.
Video explaining it
Another video, propaganda by Zimbabwe’s corrupt government, in my opinion, trying to make it sound like the bond note is a good idea. They give you a 5% bonus for exports, however, you get paid in bond notes:
Why bond notes can’t save Zimbabwe and what ordinary citizens can do
Yet bond notes are bound to fail, no matter what the government does.
Zimbabwe hopes new currency will ease cash crunch
The notes are so poorly produced that the ink is already bleeding:
Article: Zimbabwe’s new #bondnotes currency now pegged 1 US Dollar : 40 Bond Notes on black market
The introduction of the bond notes has stoked fears of a return of hyperinflation, which peaked at 500 billion percent in December 2008 according to the IMF, as well as pervasive shortages of basic goods and foodstuffs.
On Monday, months after announcing it would introduce a local currency, Zimbabwe’s central bank finally injected $12 million worth of bond notes — in $2 and $5 bills — into the economy, in a bid to end the debilitating bank note shortage.
A $1 bond coin was also introduced, to join coins valued from 1 cent to 50 cents introduced in December 2014 to resolve the problem of small change under a different $50 million Afreximbank facility.
Recently, withdrawal limits have been put on the Zimbabwe bond notes:
India pulled 86% of its cash out of circulation. It’s not going well.
Tens of thousands of people have taken to the streets of cities throughout India to protest an economic policy you probably haven’t heard of before: demonetization.
Three weeks ago, Indian Prime Minister Narendra Modi surprised his country with an announcement banning 500- and 1,000-rupee notes — worth about $7 and $15 respectively — in a bid to tackle corruption and terrorism.
He estimated that forcing people to exchange the country’s largest currency bills for new banknotes would allow the government to crack down on “black money” — unaccounted-for cash holdings that haven’t been taxed but, under the law, should be. He also argued that it would strike at domestic terrorist financing operations by capturing counterfeit money and rendering the legitimate cash they kept in the shadows worthless.
Banning widely used banknotes would have a huge impact on any economy, but in India the policy is transformative. Modi’s sudden ban instantly meant that 86 percent of all the cash in circulation in India was no longer considered legal tender, which means that businesses could refuse to accept those bills as a form of payment. And the Indian economy simply runs on cash: It’s estimated that between 90 and 98 percent of all transactions in India, measured in terms of volume, involve it.
It also appears that the new 2,000 Rupee notes have a chip in them, some even filming the removal of the chip to suggest it is a GPS tracking chip:
Whether or not this is true, what is true is that India has produced a new 2000 (2k) rupee banknote with new security features.
Iran plans to revalue, rename rial currency
Iran plans to revalue its rial tenfold and revert to the currency’s old name, the toman, according to a bill approved on Wednesday by President Hassan Rouhani’s cabinet, the official Islamic Republic News Agency (IRNA) said.
The currency was called the toman until the 1930s and most Iranians still refer to it by that name.
Under the measure, which requires approval from parliament and the Guardian Council before taking effect, the renamed currency would be worth around 3,200 to the dollar at official exchange rates and 3,900 at unofficial rates.
Toman is a Turkish word that means “Ten thousand.” Rial is Spanish for “royal.”
Under the proposed plan, 10 rials would equal one toman, reversing the initial conversion established in 1932.
Since the Revolution, Iranians have lost much of their purchasing power and American sanctions have further weakened the country’s rial currency. A US dollar is currently worth an estimated 32,000 rials at official exchange rates.
One euro is equal to nearly 34,000 rials.
“Switching the national currency from the rial to the toman is a measure which is meant to facilitate transactions by the public, to acknowledge what the people generally accept in their current trend of trade and to match the economics of the society with the realities,” said Valiollah Seif , the governor of the Central Bank of Iran, who proposed the currency swap.
In their daily interactions, many Iranians colloquially refer to rials as tomans, keeping with their historical currency and denomination when making transactions.
It is common in Iran today for a shop keeper to ask for 10 tomans for a good that costs 100 rials.
Aussie Dollar Plunges As Inflation Slumps To Record Low
Despite Iran plans to revalue its rial – which must be real and represent demand growth and price increases, right? – Aussie core inflation slowed to the weakest on record as headline prices unexpectedly fell last quarter (CPI -0.2%). RBA Rate-cut odds tripled instantly sending AUD down over 1.2% (its biggest drop in 2 months). Perhaps, just perhaps, that collossal credit injection in Q1 via China did not make it into the AsiaPac economy after all and merely fueled a speculative frenzy in commodities that merely “looks” like a recovery?
The Reserve Bank of Australia looks at two core inflation measures — trimmed mean and weighted median — and Wednesday’s report showed:
- Trimmed mean CPI rose 0.2% QoQ vs. median forecast of 0.5%
- Weighted median CPI gained 0.1% QoQ vs. median forecast of 0.5%
- CPI fell 0.2%, first decline since final quarter of 2008 vs. median forecast 0.2% rise
British Pound Loses 20% Since Brexit
The chart above shows what happened after the Brexit vote on June 23, 2016.
This is a 31-year LOW against the United States Dollar.
Sterling falls through lows set in wake of EU referendum
May spurs concern U.K. is headed for a ‘hard Brexit’
Also read this:
Pound sterling falls to six-year low against the euro
The pound is under pressure from fresh Brexit uncertainty
The latest currency selloff came as investors were disconcerted by claims that Chancellor Philip Hammond had angered cabinet Brexit supporters by failing to be helpful enough in pursuing the UK’s withdrawal from the European Union.
Five charts that show how the pound has been ravaged by Brexit
Analysts’ forecasts see the pound slipping lower towards the end of the year as more concrete Brexit plans could weight on its recovery.
Meanwhile, some holidaymakers at UK airports have already been offered less than €1 to the pound as sterling’s value continues to plummet.
Please comment below, this is historic and I would like to see what you all think. Have a Merry Christmas!
Here are the links where you can find me
Twitter – https://twitter.com/globalresetguy
Here are the links where you can find me
Twitter – https://twitter.com/globalresetguy