Venezuela’s Petro Hiked 150% in Line with Wage Hike

Dec 03, 2018 at 23:10

Venezuela has hiked the value of the petro, its national cryptocurrency, to 9,000 bolivars from 3,600 previously.

The announcement was made by Venezuelan President Nicolas Maduro who was quoted in a Bloomberg report as saying in national television.

The increase was triggered by a 150 percent increase in the monthly minimum wage, marking the sixth upward adjustment this year.

Pegged to the petro, the minimum monthly wage, effective Dec. 1, stands at 4,500 sovereign bolivars from 1,800.

This brings the Maduro administration raising the minimum wage 25 times since 2013, the start of the administration’s rein.

“The arrival of Christmas is very exciting, so this corrective measure comes as a gift for large working families,” Maduro said.

Venezuela currently faces an economic nightmare with an annual inflation rate hitting close to 200,000%.

The move received criticism from Venezuelan economist Leonardo Buniak who explained that the petro was initially pegged at 3,600 Bs. due to the Dicom dollar and oil costs.

“[N] ow a petro is decreed at 9,000 Bs.s … you have just devalued the sovereign bolivar with respect to the petro and by more than 100%,” Buniak was quoted in a report by the atodomomento, adding that “anchoring the bolivar to the petro is anchoring it to nothing.”

Buniak also pointed out that lacks a primary crypto trait which is dictated by the market’s movement.

“The petro cannot be called a cryptocurrency because the value was given by President Maduro and not the interaction between supply and demand,” he added.

Meanwhile, the wallet for the petro remains unavailable.

Nevertheless, the government continues selling its digital currency, issuing purchase certificates ro buyers in the meantime.