Venezuela’s Troubled Economy Needs Dollarization

Dollarizing Venezuela’s Economy as a way forward: a compelling piece.

Prosper

By Moises Rendon

Venezuela has the highest inflation rate in the world, with an estimated annual rate of as much as 700 percent as of this October. The Venezuelan economy is also due to shrink at the world’s highest rate this year – about 10 percent, according to the International Monetary Fund (IMF). With high inflation and a shrinking economy, Venezuela is facing one of the worst economic crises in the world, and a solution is urgently needed.

The Bolívar, Venezuela’s currency, has lost its credibility among Venezuelans, and is viewed with even less respect abroad.  An alternative is needed to reset the Venezuelan economy, improve trust, and provide a reliable store of value. Dollarizing the Venezuelan economy is a compelling possibility.

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The current Venezuelan administration is one of the worst in the world when it comes to economic and monetary management. Each year Steve Hanke, a John Hopkins…

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