Page 12 - aruba-today-20171007

A12 WORLD NEWS
Saturday 7 OctOber 2017
Venezuelans struggle with cash and food shortages

By FABIOLA SANCHEZ carries a “very high price”
Associated Press for Maduro’s government
CARACAS, Venezuela (AP) but the opposition has not
— Venezuelans already been able to capitalize on
struggling to find food, the discontent.
medicine and other ba- Venezuela’s Central Bank
sic necessities have a new injected 849 million bills
shortage to worry about: in varying denominations
cash. into the nation’s economy
Troubling shortfalls of Ven- up until August, three times
ezuelan bolivars are forc- the amount released over
ing many in this distressed the same time period in
South American nation 2016 — yet still not enough
to form long lines outside to keep up with inflation.
banks several times a week It’s not uncommon to see
to withdraw what little cash Venezuelans paying for
is available. Others are re- goods with large wads of
sorting to bartering goods cash, and authorities have
and services to skirt cash opened investigations into
transactions. citizens caught hoarding
“As if we didn’t have substantial amounts, even
enough problems al- if they add up to relatively
ready,” said Roberto In this Sept. 23, 2017 photo, customers pay with new bank notes for their groceries, at a market small dollar values.
Granadillo, 37, a watch- in Caracas, Venezuela. Venezuelans already struggling to find food, medicine and other basic In one high-profile probe,
maker. “Now we can’t necessities have a new headache to worry about: shortages of cash. prosecutors last month
even find bills.” (AP Photo/Fernando Llano) seized 200 million boli-
Venezuelan President are quickly dwindling in val- Granadillo, who said his another. He said the boli- vars — the equivalent of
Nicolas Maduro blames ue. In January, one U.S. dol- weekly income has slipped var’s value has crashed 75 about $8,000 at the black
the cash crunch on mafias lar was worth 4,578 bolivars more than 50 percent as percent between January market rate — from ac-
moving bills overseas in an on Venezuela’s pervasive customers use the bills and August, and that banks tivist Lilian Tintori, the wife
attempt to derail the na- black market; by October they are able to obtain to are limiting the amount of Leopoldo Lopez, the
tion’s economy, though a U.S. dollar got you 29,170 purchase food instead of of cash they let custom- country’s most prominent
he’s presented only scant bolivars, according to Dol- comparative luxuries like a ers withdraw because the political prisoner. The cash
evidence to back the arToday, a website critical watch repair. Central Bank is not provid- was found in steel-clad
claim. What is certain is of the government that Instead of cash, he has re- ing enough bills. wooden boxes in the back
that the country’s triple- tracks the black market cently begun accepting a “You need a lot more bills,” of her car. Tintori claimed
digit inflation continues to rate. new form a payment: A kilo Guerra said. “And they the investigation was part
skyrocket, meaning Ven- Analysts project Venezu- (2.2 pounds) of ham, chick- aren’t there.” of a pattern of persecu-
ezuelans must find larger ela’s inflation could surpass en or beef in exchange for The escalating cash crunch tion against her family and
quantities of the scarce 1,000 percent this year and a newly ticking watch. comes on the heels of four that the cash was needed
bills to purchase even rel- many Venezuelans worry “You have to find a way to months of political up- to pay for emergencies
atively inexpensive items recently announced sanc- eat,” Granadillo said. heaval that left at least 120 including the hospitaliza-
like bread or a cup of cof- tions by the Trump admin- At the start of 2017, a 20,000 people dead in near-daily tion of her 100-year-old
fee — or turn to electronic istration prohibiting U.S. bolivar bill — the equivalent protests decrying Maduro’s grandmother.Venezuelan
transfers from their bank banks from issuing new of about $6 and the larg- rule. In early August, a new, Banking Superintendent
accounts. credit to the Venezuelan est denomination of Ven- all-powerful constitutional Antonio Morales recently
The Venezuelan govern- government or its state oil ezuelan currency — could assembly was installed fol- told Union Radio that boli-
ment released new, higher company will deepen the easily purchase five basic lowing a vote boycotted var notes leaving banking
denomination bills in values economic crisis. In Septem- food products: rice, cof- by the opposition. One of institutions are not being
of 500, 5,000 and 20,000 bo- ber, Venezuelan authorities fee, corn flour, sugar and the new assembly’s first returned, as typically hap-
livars earlier this year after enacted stricter banking pasta. Now Jose Guerra, acts was to declare itself pens when cash shifts from
the currency meltdown left and business regulations in president of the opposition- superior to all other branch- customers to commercial
the country’s then-largest an attempt to stem the tide controlled National Assem- es of government, making businesses and back to
note worth around 2 U.S. of bolivar bills. Officials are bly’s Finance Commission, the nation’s already weak- banks. He said investigators
cents on the black market. also considering printing estimates that a 20,000-bo- ened legislature an essen- have uncovered evidence
But now even the freshly bills in even higher values. livar note only has the pur- tially powerless institution. that contraband networks
minted bills, printed in rain- The cash shortage is al- chasing power to obtain Jose Gil, director of Vene- are moving paper cash
bow hues and imported in ready being felt in the daily just one of those and half zuelan polling firm Datanal- out of Venezuela and into
part from the United States, lives of Venezuelans like a standard-sized portion of isis, said the cash shortfall Colombia. q
Brazilian forces fan out in Rio to combat rising violence

SAO PAULO (AP) — Hun- military to help patrol the out in Morro dos Macacos sion showed police and sol- deployed in August to try
dreds of Brazilian police perimeter of Rocinha, Rio’s early Friday to serve 31 ar- diers patrolling the neigh- to curb the violence a year
and military troops swept largest slum. rest warrants, the result of a borhood, which appeared after Rio hosted the Sum-
through a neighborhood in Friday’s operation in the three-month investigation calm following the morning mer Olympics.
northern Rio de Janeiro on neighborhood of Morro dos into gangs. raids. The troops have mostly
Friday as part of efforts to Macacos was related to So far, 10 people have Rio has long struggled with been patrolling, not en-
combat rising violence in ongoing efforts to combat been arrested and a large crime, but amid a national gaging with traffickers, but
the city. violence in Rocinha, where quantity of drugs seized, se- economic crisis, it is expe- soldiers moved into Ro-
In recent weeks, a series of rival drug-trafficking gangs curity official Rodrigo Alves riencing its worst wave of cinha last month to provide
intense shootouts led Bra- are competing for control. said at a news conference. violence in a decade. backup for police. They
zilian authorities to ask the Police and soldiers fanned Images on Brazilian televi- About 8,500 troops were have since pulled back.q