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- – Venezuela launched a new currency with the new year, lopping off three zeros from denominations in a bid to simplify finances and boost confidence in a money that has been losing value due to high inflation.
President Hugo Chavez’s government says the new currency — dubbed the “strong bolivar” — will make daily transactions easier and cure some accounting headaches. Officials also say it is part of a broader effort to contain rising prices and strengthen the economy.
“We’re ending a historical cycle of … instability in prices,” Finance Minister Rodrigo Cabezas said Monday, adding that the change aims to “recover a bolivar that has significant buying capacity.”