Venezuelan President Nicolas Maduro announcedÂ Wednesday that the South American nation would be removing five zeros from its currency in order to combat runaway inflation that is nearing a staggering 1 million percent.
Will this help the economy?
In a speech, Maduro said that this move would stabilize the economy by "anchoring" the bolivar. Maduro said that the country needed anÂ âeconomic revolution.â
Inflation in Venezuela is expected to reach 1 million percent by the end of the year, according to the International Monetary Fund. Initially, Maduro's government had planned to remove three zeros from the currency, but Maduro revealed in this announcement that the number had been increased to five. Inflation is currently at 46,000 percent.
As a result of the crippling inflation and economic instability, Venezuela's minimum wage is the equivalent of one U.S. dollar a month. This has made it impossible for Venezuelans to buy even basic necessities.
Maduro also said that the government …