CARACAS (AP) – the President Nicolas Maduro announced Friday a 3,300% to the minimum wage increase, the fifth increase so far in the year, in an attempt to lessen the impact of hyperinflation that go lpea to Venezuela.Como part of a package of measures, Maduro said that his Government will establish “a single fluctuating exchange rate” that will be anchored to petro, the Venezuelan cryptocurrency, but not said when it would enter into force. In the South American country operate two rates: one for official badges and other auctions to remittances that are below the black market exchange rate. Ripe indicated that the minimum wage will be 1,800 sovereign bolivars, the new currency that will be effective on Monday, and said that that new income equals half petro. The ruling also set pension in 1,800 sovereign bolivars.
The President had already increased salaries in June, when it approved a 103% adjustment which led the minimum wage to 5.19 million bolivares (equivalent to 51.9 sovereign bolívares).
Maduro said that, to avoid the measure the Government impact on inflation, over the next 90 days you will assume “the payroll of all the small differential” and medium industry of the country.
The announcement of the increase in salaries reach three days that it comes into force a currency redenomination, which will involve the Elimination of five zeros to the bolivar. The monetary change is part of an adjustment plan which the Government hopes to develop in the coming weeks to lift the oil country of the complex economic and social crisis facing. The ruling said that a “conversion bonus” of 600 bolívares sovereign will be delivered to 10 million people who own the State meat known as the “card of the homeland”. The new wage increase was questioned by analysts and entrepreneurs, which warned that the measure could lead to a strong acceleration of prices, and will represent a blow for many companies, overburdened by the severe economic recession and hyperinflation.” This has a significant fiscal cost and a strong burden on the private sector”, said on his Twitter account the Economist Asdrubal Oliveros, director of the local firm’s website Onuva. He argued before the monetary expansion to generate the wage increase and new bonus “expected a more aggressive stage of hyperinflation”. 82.766%, according to calculations of the opposition congressmen annualized inflation reported in Venezuela in July. The International Monetary Fund said inflation could jump in Venezuela to 1,000,000% at the end of the year, a rate record in the region that would take the oil country to a situation similar to that faced Germany in 1923 and Zimbabwe in 2008.
The ruling reiterated that petro will operate from Monday as a “unit of Venezuelan account” and will serve to set the “value of work” and the price of consumer goods.
Talk about the price of the cryptocurrency, Maduro said that a petro will have a dollar value equivalent to an “oscillating amount of $60 or more”, that is the price of the oil barrel and added that each petro will be worth “3,600 bolivars (sovereign)”.” This little game is sold out, the little game perverse, criminal, establish a speculative and false price of the dollar and then dolarizating all prices”, said Maduro, to ensure that it aspires to that with the anchoring of the sovereign bolivar to petro and the setting of a new rate is to defeat the black market, where the exchange rate is quoted at more than fifteen times the official rate. In Venezuela it is valid for fifteen years a shift control that recently relaxed with the repeal of legislation on illicit exchange. Exchange rate on the black market, which at present is around 6 million bolivars to the dollar, is used as a reference for the definition of a large part of the prices in Venezuela.El President not made it clear if petro value compared to the dollar and the Bolívar sovereign ar will be used as a reference for auctions of foreign exchange officers of the floating market (Dicom) complementary Exchange System of type currency, or the operations of remittances that have a rate different from the auctions. Also announced that it will be the tax to the added value (VAT) from 12% to 16% in this note: Venezuela Caracas Nicolas Maduro wage increase
