on December 2, 2014
The value of the Venezuelan bolívar has plummeted in the past month, depreciating from 102.56 to 159.02 per US dollar on the black-market exchange. November’s decline indicates that Venezuela now flirts with hyperinflation.
The rule of thumb among economists is that hyperinflation occurs when inflation — the declining purchasing power of a currency as measured by a rise in the price level — exceeds 50 percent on a monthly basis. As deduced from the black-market exchange rate and the US Consumer Price Index, Venezuela’s inflation for November reached 55.27 percent.* Even the highest denomination of the bolívar, the 100 Bs. note, is now worth a mere 62.9 US cents.