Cash-Strapped Venezuela Offers to Pay for Medicines With Diamonds

[thackney]

Cash-Strapped Venezuela Offers to Pay for Medicines With Diamonds
https://www.wsj.com/articles/cash-strapped-venezuela-offers-to-pay-for-medicines-with-diamonds-1515061800
Jan. 4, 2018

With hospital shelves bare and the government stumped on how to settle $5 billion in arrears to pharmaceutical companies, cash-strapped Venezuela recently offered some foreign suppliers alternative compensation: diamonds, gold and coltan, the rare metal used to make cellphones and Playstations.

The proposed exchange perplexed the pharma representatives, whose companies had no policies on accepting precious gems and metals as payment, according to three people familiar with the meeting last month where Venezuela’s health minister made the offer.

While it isn’t clear if any of the companies accepted it, the proposal underscores how Venezuela’s economic collapse is forcing President Nicolás Maduro’s embattled administration to improvise to pay for goods as severe dollar shortages push the country toward a barter society.

Bartering is also creeping into daily street transactions for staples, partly because the government is too broke to print enough currency. The so-called Strong Bolivar, which the government created in 2008 by lopping three zeros off its previous currency, lost 97% of its value in 2017 alone as the oil-rich country plunges further into hyperinflation.

“Money was created so that we could avoid having to barter for basics,” said Caracas-based economist Omar Zambrano. “But we’ve fallen so far that we’re now going back in time.”....

[thackney]

Venezuela’s Maduro Announces 40% Minimum Wage Increase for New Year
https://venezuelanalysis.com/news/13572

Effective January 1, the salary increase brings the Venezuelan minimum wage up from 177,608 bolivars to 248,510 bolivars. Similarly, food tickets have been raised from 279,000 to 549,000, bringing the comprehensive minimum wage to a total of 797,510 bolivars per month.

The president also decreed an increase in the pension system, from 177,507 to 248,510 bolivares, while the war bonus has also been increased from 53,252 to 99,340 bolivares.

Maduro, in his address, also pressed that the Government's goal for the first four months of 2018 is to reach 100 percent of care for the elderly, through the Homeland Card system....

[WingNot]

So who runs Bartertown?

[Oceander]

Venezuela’s Maduro Announces 40% Minimum Wage Increase for New Year
https://venezuelanalysis.com/news/13572

Effective January 1, the salary increase brings the Venezuelan minimum wage up from 177,608 bolivars to 248,510 bolivars. Similarly, food tickets have been raised from 279,000 to 549,000, bringing the comprehensive minimum wage to a total of 797,510 bolivars per month.

The president also decreed an increase in the pension system, from 177,507 to 248,510 bolivares, while the war bonus has also been increased from 53,252 to 99,340 bolivares.

Maduro, in his address, also pressed that the Government's goal for the first four months of 2018 is to reach 100 percent of care for the elderly, through the Homeland Card system....

[To-Whose-Benefit?]

And The Bolivar is so worthless today that merchants there won't take it as payment, insisting on US dollars instead.