Venezuela Renames Currency as 'Sovereign Bolivar' Amid Super-Inflation, Economic Turmoil: Your Top Questions Answered
Inflation in Venezuela is increasing by 1 million per cent | (Photo Credits: Getty Images)

Caracas, Aug 21: In a bid to tackle the economic turmoil and super-inflation which has gripped Venezuela, the government of President Nicolas Maduro rejigged the national currency bolivar as the 'sovereign bolivar'.

The new currency, Caracas announced, will be linked to Venezuela's cryptocurrency petro, whose value is dependent on the rate of oil exported from the South American nation.

Here are your top questions on the issue answered:

- How much is bolivar worth?

2,50,000 bolivars valued 1 US dollar till August 18. The new currency, sovereign bolivar is more weak against its American counterpart. As of today (August 21), 6 million bolivars made 1 US dollar.

- How to buy Venezuelan bolivar?

Investing in petro, the cryptocurrency linked by Venezuela to the new bolivar is one way to acquire the currency. At present, the petro has been valued by Caracas at about $60.

- What happened to Venezuela?

With sanctions levelled by the United States and the European Union, Venezuelan economy has been crippled. The country is facing an unprecedented inflation, with the currency losing its value by millions of dollars by each passing day.

- What is the Venezuelan inflation rate?

Inflation in Venezuela is growing at 100,000 per cent each year.

- Why did Venezuela devalue the bolivar?

The Nicolas Maduro government is of the opinion that devaluing the currency could check the pace of inflation. The devaluation of currency will also allow the authorities to fulfill the populist measure announced by the President -- raising minimum wages by 3,000 per cent.