Thursday, May 18, 2017

One million percent later

The day was February 2nd, 1999. And a dollar cost 576 bolivares… of the old kind. Today, eighteen years later, as Venezuela reels from hunger and collapse and oppression, that price is over 1,000,000% higher.

That’s a one with six zeros: One. Million. Percent.

In February 1999, the exchange rate was 0.576 BsF/$. Chavez hadn’t wiped three zeros off the currency then, so it was 576 Bs/$. Well, a dollar now costs just under six million of those old bolivares (or 5,800 of the new ones). Divide the current rate by the 1999 rate, add two zeros and a % sign and see for yourself. The nominal exchange rate is up over a million percent ....