Illustration of Venezuelan hyperinflation from 2012 through 2018. Part 5.

Let’s take a look at what hyperinflation does to the value of currency.

Using the Bolivares Fuertes (Bv.f) currency, we can construct a visualization of hyperinflation.

Previous posts describe the horrid inflation suffered by the people in Venezuela:

Imagine a small basket of a few items that would cost $1. The following illustrations are how many Bolivares fuerte it would take to buy that little basket.

From 2010 and earlier up until August 2012, 10 Bv.f could convert to US $1. That was before the inflation took off.

Value to US$1 in 8/12 and earlier:

This image has an empty alt attribute; its file name is 10-bolivares-reverse-1024x453.jpg

What happened in the next six months?

In 2/13, six months later, 20 Bolivares were needed to buy $1. Twice as many.

2/13:

Eight months later, in 10/13, it took 2.5 times again as much to buy the same $1 basket of stuff. That is five times as much as in 8/12.

10/13:

It took eleven more months to double the Bv.f to buy $1. In 9/14 exchange rate was 100:1

9/14:

In another 10 months, it took six times as much to buy $1.

7/15:

This image has an empty alt attribute; its file name is 100-bolivares-reverse-1024x456.jpg

In another seven months, 2/16, the exchange rate almost doubled, to 1,000:1

2/16:

By 10/16, the exchange rate was at 1,500. Another month, 11/16, it more than doubled to 4,000:1. In nine months an increase from 1,000 to 4,000.

11/16:

This image has an empty alt attribute; its file name is 2-000-bolivares-reverse-1024x452.jpg

In another six months, 5/17, it took another 50% drop, with exchange rate at 6,000:1. The alternative to the following two bills would be a big stack of 600 bills of the 10 Bv.f denomination. 600. In about five years.

5/17:

This image has an empty alt attribute; its file name is 1-000-bolivares-reverse-1024x456.jpg

In merely two months, to 7/17, the exchange rate deteriorated about double, to 11,000:1.

7/17:

This image has an empty alt attribute; its file name is 1-000-bolivares-reverse-1024x456.jpg

In two more months, 9/17, the exchange rate was 29,000:1. This is horrible enough that we can illustrate with a 20K and 10K note, keeping in mind there would be a 1,000 bill left over, or about 1/3 of a penny.

9/17:

This image has an empty alt attribute; its file name is 10-000-bollivares-reverse-1024x454.jpg

In merely 2 more months, in 11/17, the exchange rate accelerated to 97,000:1. So you could now use a 100,000 bill with 3,000 change. The change would be worth about one third of a cent.

11/17 (notice3 zeros dropped from the number):

In 4/18, another 5 months, it would take 6 of the 100,000 bills to buy a $1 basket of stuff.

In 8/18, another 4 months, it would take 59 of the 100K bills for a dollar, about 10 times as many.

By 12/18, merely 4 months, you would need 730 of the 100K bills for a dollar, over ten times as many. Exchange rate was 730,000,000:1.

If you want to see this devastating hyperinflation in terms of numbers, here is the list of the exchange rates visualized above:

 exchange datemonths
                          10August-12
                          20February-136
                          50October-138
                       100September-1411
                       600July-1510
                    1,000February-167
                    4,000November-169
                    6,000May-176
                 11,000July-172
                 29,000September-172
                 97,000November-172
               621,000April-185
           5,900,000August-184
         73,000,000December-184

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