Venezuela raises minimum wage by 3000% before canceling "currency zeros"

18 August 2018 07:41 PM


Venezuelan President Nicolas Maduro has decided to raise the minimum wage for the fifth time since the beginning of this year, a move ahead of the decision to cancel 5 zeros from the local currency.

"It is decided to raise the minimum wage by 3300 per cent to 1800 sovereigns, the new currency which is due to enter into force on Monday,"Maduro said in a televised statement on Friday.

Venezuela is suffering from a sharp depreciation of the currency and a record rise in inflation as the economy shrinks and foreign revenues fall amid US sanctions against the Latin state.

Venezuela is due to announce on Monday the cancellation of 5 zeros from the local currency "Bolvar" in an effort to rein in inflation expected to reach 1 million percent this year.

Maduro said he wanted to link wages, prices and pensions in the currency of Petro, the electronic currency launched by Venezuela last February, but has not yet given rise to trading.

The Venezuelan president has vowed to seek to end the budget deficit through measures including raising corporate taxes and cutting subsidies.