Venezuela cash crisis sparks looting, protests

A woman counts 100-bolivar-bills at an office in Caracas on December 12, 2016. (AFP)
Updated 17 December 2016
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Venezuela cash crisis sparks looting, protests

CARACAS: Desperate Venezuelans looted delivery trucks and clashed with police as a botched plan to introduce new banknotes left people without cash — the latest shortage in a spiraling economic crisis.
Late Friday President Nicolas Maduro blamed opposition politicians for the unrest, claiming that there were pictures and videos of some opposition members of the National Assembly involved in “attempts of vandalism and some acts of violence.”
He warned that “parliamentary immunity does not reach that far,” but did not give any names.
Maduro mentioned that rioters had torched two state banks in the town of Guasdalito, near the border with Colombia.
He blamed unnamed opposition leaders who were also part of a “contraband mafia” for the incident, and warned that they “will be captured and put behind bars in the next hours.”
Faced with world-high inflation that has made its money increasingly worthless, the government is trying to introduce new bills in denominations up to 200 times higher than the old ones.
But the plan went off the rails when Maduro ordered the 100-bolivar note removed from circulation before the new bills arrived.
Formerly the highest denomination bill, the 100-bolivar note was worth about three US cents, and accounted for 77 percent of the cash in circulation in Venezuela.
Angry protests erupted around the country as the chaotic reform left people without money to buy food or Christmas presents.
In the second city of Maracaibo in the west, groups of protesters hurled stones at police, reports said.
In the eastern city of Maturin, dozens of people blocked off a major avenue and looting broke out.
“I went by the market and it was being guarded by the military. A chicken truck was looted,” Juan Carlos Leal, a farmer in Maturin, told AFP.
In the eastern city of Puerto la Cruz, “people rioted because they wanted to take out money and they weren’t allowed to,” said Genesis, a local baker.
“The police fired in the air to calm the riot. Everyone dispersed and the police ordered all shops to be closed,” said Genesis, who asked not to be identified by her surname for fear of reprisals.
Protests were reported by users on Twitter in several Venezuelan states.
Local media in the western city of Santa Barbara said four people were injured when the drivers of a security truck transporting money opened fire on people trying to break into it.
In the capital Caracas, thousands of Venezuelans from around the country queued to rid themselves of 100-bolivar notes at the only place still accepting them: the central bank.
Many were angry to learn they would only be allowed to deposit the old bills or obtain “special vouchers” for new ones.
“The world has turned upside down. Normally, there’s no food. Now there are no bills to buy it,” said Jesus Garcia, a 21-year-old food vendor who had been in line since 4:00 am.
Maduro has presided over an unraveling of Venezuela’s oil-rich economy as crude prices have plunged.
The import-dependent country is desperately short of food, medicine and basic household goods.
Venezuela currently has the world’s highest inflation rate, set to hit 475 percent this year, according to an IMF forecast.
Maduro, whose popularity has plummeted, said the 100-bolivar note had to be killed because “mafias” were hoarding it abroad in what he called a US-backed plot to destabilize Venezuela.
In response, the leftist leader has sealed the borders with Colombia and Brazil until Sunday, exacerbating the chaos.
Angry crowds massed in the town of San Antonio at a bridge crossing on the Colombian border, yelling “We want to cross!“
“We are suffering. We are hungry, we have no medicine, we have nothing. Nothing!” said one of the people in the crowd, Carmen Rodriguez.
“And now with this money problem, we can’t even buy food.”
The 100-bolivar note ceased to be legal tender on Thursday.
Initially, Venezuelans were to have 10 days after that to exchange them at the central bank.
Maduro subsequently slashed the grace period to five days.
Venezuelans had grown used to carrying around huge stacks of 100-bolivar bills for even the smallest purchases.
Now they are stuck trying to amass even bigger piles of 10-, 20- and 50-bolivar notes.
Some companies have stopped dealing in cash altogether.
The new banknotes were initially to be launched Thursday, starting with a 500-bolivar bill and eventually reaching denominations up to 20,000.
But the bills, which are being printed abroad, have yet to arrive.
“By removing the 100-bolivar bills, they are jamming up the economy,” said economist Alberto Martinez.
“Cash registers have no money. The system is under stress.”


India’s Modi stares at biggest election loss since coming to power

Updated 11 December 2018
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India’s Modi stares at biggest election loss since coming to power

  • Analysts say a big loss for Modi’s Bharatiya Janata Party would signify rural dismay and help unite the opposition
  • Poll analysts cautioned that with the counting in preliminary stages, it was still too early to predict the outcome of state races involving millions of voters

NEW DELHI: India’s ruling party could lose power in three key states, four TV networks said on Tuesday, citing votecount leads, potentially handing Prime Minister Narendra Modi his biggest defeat since he took office in 2014, and months ahead of a general election.
The main opposition Congress party could form governments in the central states of Chhattisgarh and Madhya Pradesh, and in the western state of Rajasthan, all big heartland states that powered Modi to a landslide win in the 2014 general election.
Analysts say a big loss for Modi’s Bharatiya Janata Party would signify rural dismay and help unite the opposition, despite his high personal popularity in the face of criticism that he did not deliver on promises of jobs for young people and better conditions for farmers.
“We’ve all voted for Congress this time and our candidate is winning here,” said Bishnu Prasad Jalodia, a wheat grower in Madhya Pradesh, where it appears as if Congress might have to woo smaller parties to keep out Modi’s party.
“BJP ignored us farmers, they ignored those of us at the bottom of the pyramid.”
The elections are also a test for Rahul Gandhi, president of the left-of-center Congress, who is trying to forge a broad alliance with regional groups and face Modi with his most serious challenge yet, in the election that must be held by May.
In Rajasthan, the Congress was leading in 114 of the 199 seats contested, against 81 for the BJP, in the initial round of voting, India Today TV said.
In Chhattisgarh, the Congress was ahead in 59 of the 90 seats at stake, with the BJP at 24. In Madhya Pradesh, the most important of the five states that held assembly elections over the past few weeks, Congress was ahead, with 112 of 230 seats. The Hindu nationalist BJP was at 103, the network said.
Three other TV channels also said Congress was leading in the three states, with regional parties leading in two smaller states that also voted, Telangana in the south and Mizoram in the northeast.
Poll analysts cautioned that with the counting in preliminary stages, it was still too early to predict the outcome of state races involving millions of voters.
Local issues usually dominate state polls, but politicians are seeing the elections as a pointer to the national vote just months away.
Indian markets recovered some ground after an early fall as the central bank governor’s unexpected resignation the previous day shocked investors.
The rupee currency dropped as much as 1.5 percent to 72.465 per dollar, while bond yields rose 12 basis points to 7.71 percent after the resignation of Reserve Bank of India Governor Urjit Patel.
The broader NSE share index was down 1.3 percent, with investors cautious ahead of the election results.
“As the three erstwhile BJP states have a large agrarian population, the BJP’s drubbing could be interpreted to mean that farm unrest is real,” Nomura said in a research note before the results.
“A rout of the BJP on its homeground states should encourage cohesion among the opposition parties to strengthen the non-BJP coalition for the general elections.”
Gandhi, the fourth generation scion of the Nehru-Gandhi dynasty, has sought to build a coalition of regional groups, some headed by experienced firebrand, ambitious politicians.
Congress has already said it would not name Gandhi, who is seen as lacking experience, as a prime ministerial candidate.
“When one and one become eleven, even the mighty can be dethroned,” opposition leader Akhilesh Yadav said of the prospect of growing opposition unity.