A weekly section discussing how general events can influence the future of cryptocurrency sector
Venezuelan Bolivar Lost 29% of Its Value in 9 Days
With the exchange rate of the Venezuelan bolivar rapidly approaching 300 Bs. Per US dollar, the nation is headed toward hyperinflation. “The pressure on the bolivar has increased with falling oil prices, increased political uncertainty and fears of a default,” wrote economist Steve Hanke, director of the “Coins in trouble,” the Cato Institute.
Ukraine: Annual Inflation Reaches 272%
Inflation in Ukraine is officially 28.5%, but according to Professor Johns Hopkins Steve Hanke, it has actually reached 272% and is further accelerating. In fact, the monthly inflation rate is 64.5%, which would translate into an annualized 39,000% that is more than enough to get into the category of hyperinflation.
Greece may need a third bailout
Valdis Dombrovskis, Vice President of the European Commission, said Greece may need a third bailout deal in June when its current program expires, because markets would be unwilling to lend to their government, even with a euro-area credit line.
Inflation Accelerates in Brazil
Having lost 7% against the dollar in a week, Brazil’s currency weakened beyond the psychological barrier of 3 units per dollar, after an austerity plan presented by the Brazilian government was rejected in the Senate. Official data showed that in February inflation in Brazil reached its maximum acceleration in almost 10 years.