Venezuela town issues local cash in response to cash shortage

April 9, 2018 Share Source

In response to the chronic cash shortages overwhelming Venezuela, locals are taking matters into their own hands by issuing their very own town-issued paper currency. Welcome to Elorza, home to over 25,000 people who demand cash.

Local officials reported that fulfilling the need for a tangible currency in anticipation of the Easter festivities would facilitate trade, which had been severely affected by hyperinflation and cash shortages. The town's Mayor, Solfreddy Solórzano has been selling the currency from his office via bank transfers.

This reaction supports the case for cash. Even when economic disasters and socio-political turmoil leaves a nation starving and polarised, one thing is for sure: cash is an inspired public good

As the old saying goes, 'When cash becomes scarce, the inspired issue cash to get money flowing.' Or something to that effect... 

Excerpt from BBC article

The paper bills feature the face of independence hero José Andrés Elorza and, like the town, are named after him.

"People don't have bolivares to spend, that's why we have created bills of two denominations... and we've already sold 2bn bolivares worth,"
" Solfreddy Solórzano Mayor of Elorza (town) Governing PSUV (socialist party)

Local businessman Canuto García explained that the town came up with the idea after it noticed that at local festivities in nearby cities "money did not flow".

Read full BBC article here

Source

Staff writer. 'Venezuela town issues own currency amid cash shortages.' BBC News. Published March 19, 2018. Accessed April 04, 2018.


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Last Updated: Aug. 19, 2018