Forget the Bolivar, in Venezuela Bartering Is the New Economy

Mon May 07 2018
Lucy Harlow (4127 articles)
Forget the Bolivar, in Venezuela Bartering Is the New Economy

As the Venezuelan bolivar becomes increasingly irrelevant, citizens are transforming the country into one run by a barter economy.

A new Bloomberg report tells of parking lot attendants accepting a baguette as payment and street vendors accepting sugar for flour as citizens struggle to make it through the country’s ongoing financial crisis.

Facebook pages and chat rooms focused on swaps have popped up. And just about everywhere you go, there are cash alternatives. One barber, notes Bloomberg, will exchange a haircut for yuccas, bananas, or eggs. A carton of cigarettes will get you a cab ride. And one restaurant is offering burritos, enchiladas, and tacos in exchange for paper napkin packages.

Venezuelan president Nicolas Maduro has pushed the Petro cryptocurrency as a solution for the crisis, but unions say he is abusing his power, calling the Bitcoin alternative alternative “an invention of the government to launder drug money.” (The Trump administration has banned U.S. purchases of the Petro.)

Need to put the Venezuelan currency crisis in perspective? Consider this: The bolivar is worth less than fake gold in Azeroth, the mythical setting of World of Warcraft (WoW).

Last August, the in-game currency was worth just under twice as much as the bolivar. As of Monday, WoW‘s fake gold is worth nearly seven times as much.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Equities, Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe