Greetings, Venezuela closed 2020 with an inflation rate of 3,713 % driven by the "monetary financing" of the Central Bank (BCV) to the Government of Nicolás Maduro. According to the report of the Venezuelan Observatory of Finance (OVF), last December's inflation was 21.2% spurred by an expansion of monetary liquidity of 33%.
This phenomenon, "typical of hyperinflations", led to "a drop in real liquidity" in Venezuela, where more and more bolivars are needed to buy the same products.
With these data, the OVF assures that "Venezuela is still in hyperinflation", a scenario it entered at the end of 2017 and which has pulverized the purchasing power of citizens who do not have access to the so-called hard currencies, such as the dollar or the euro.