Petro vs cash: Venezuela’s crippled economy

While Venezuela’s government pushes the sale of its oil-backed cryptocurrency, the petro, ordinary citizens are struggling to get access to any kind of moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More. In fact, the cashMoney in physical form such as banknotes and coins. More shortage is so critical that it has caused the appearance of a new type of informal job: the cash delivery man. These human ATMs are making a better living now than ever thanks to the cash shortage, with their sky-high margins reaching up to 100% of the cash delivered.

Writing for Bloomberg, Andrew Rosati describes ordinary Venezuelans’ daily ordeal of gaining access to cold hard cash – and the exorbitant cost linked to it – even for people like himself that are generally equipped with other paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods like cards. Indeed, some of the most mundane transactions like paying for gas or buying a cup of coffee on the street require cash – a hard-to-come-by commodity in inflation-ridden Venezuela. And because of the government’s dire financial situation, it has become too expensive to print more money leaving all citizens, but particularly the most vulnerable, at the mercy of a new fleet of middlemen practicing excessive fees for their services.

Regardless of how worthless some of the lower denominationEach individual value in a series of banknotes or coins. More bills have become, cash is proving to be an invaluable asset. Yet, the government’s inability to make more of it available is unfortunately resulting in the creation of a new profession and a new grey area in the economy.

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