Coffee Becomes Alternative Currency to Banknote in Venezuelan Province

Coffee has become a currency in the province of Portuguesa in Venezuela, to pay for transactions due to the depreciation of the Venezuelan currency, the bolivar, Venezuela News said.

The news site indicated that the economic crisis the country is going through has made merchants willing to accept coffee in exchange for other goods and services, a sign that the bolivar has effectively become worthless.

The site explained that the price of coffee has become relatively stable in recent months, while the bolivar has lost more than 90% of its value against the dollar, making coffee a more attractive option for traders looking for a way to protect their profits from inflation.

Venezuela ranks second in the 2022 Misery Index prepared by US economist Steve Hanke, which measures inflation, unemployment, interest rates, and economic growth in 95 countries.

According to Hankey, the annual inflation rate in Venezuela is 440%, the highest inflation rate in the world after Zimbabwe.

Hanke also noted that Venezuela has suffered an economic contraction of 79% since 2013 when oil prices fell, and that it has one of the highest unemployment rates in the world.