Hyperinflationary Venezuela announces 150% minimum wage hike

Venezuela is hiking the monthly minimum wage by 150 percent to about $9.50, President Nicolas Maduro said late on Thursday, as part of the struggling OPEC nation’s frequent wage increases that have failed to keep pace with inflation.

The once-wealthy nation’s annual inflation now tops 800,000 percent, according to the opposition-run legislature, and citizens face chronic shortages of food and medicine.

Maduro said in a televised broadcast that the new monthly salary would be 4,500 bolivars. Citizens routinely complain they cannot afford basic items despite a 60-fold minimum wage increase in August.

The president says the country’s situation is the result of an ‘economic war’ led by opposition politicians with the help of the United States. His adversaries say failed socialist policies and indiscriminate printing of money are to blame for the country’s economic woes.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell