From money worth very little to money worth nothing – welcome from socialism to communism.
Its currency, the bolivar, is literally worth less than a penny. Venezuela’s economy is imploding. The country’s currency has lost nearly half its value since the beginning of May, according to dolartoday.com, a website that tracks the unofficial exchange rate.
It’s another sign that Venezuela is arguably the world’s worst economy. Venezuela primarily relies on oil exports to support its economy, which was already under pressure before oil prices tanked in the fall and winter.
Socialist President Nicolas Maduro has touted the Bolivarian Revolution, started by his deceased predecessor Hugo Chavez, as a successful movement. The goal is to equally distribute wealth among all the country’s people. Maduro has continued massive public spending programs to appeal to the country’s poor.
But the bolivar’s implosion has only created more inequality. There’s a growing divide between Venezuelans who can pay to exchange bolivars for dollars and those who can’t. The gap is most glaring at the local grocery store.