MercoPress. South Atlantic News Agency

The salary is tripled in Venezuela: Increases to 6 dollars

The salary that will come into effect on Tuesday is equivalent to six dollars on the black market and economic analysts fear that it will lose its value in a few days.

Nicolás Maduro ordered an increase of 300% of the minimum wage on Monday, the 26th time he makes an announcement of this kind during his term. Also, an increase in the petro cryptocurrency was decreed and the president highlighted the economic management of his government, which he said in his annual report helped to turn Venezuela into the country with “greater socioeconomic equality”.

The salary adjustment went from 4,500 to 18,000 sovereign bolivars per month. The salary that will come into effect on Tuesday is equivalent to six dollars on the black market and economic analysts says that it will lose its value in a few days.

The announcement was made with his annual management report and a government program (2019-2025) in the National Constituent Assembly (ANC), an exclusive parliament of the ruling party, where Maduro went to be ratified as president after his controversial oath before the Supreme Court of Justice on January 10.

The new economic decree announced by Maduro is part of 26 attempts during his government, the last six in a year, to try to stop the economic depression suffered by the Caribbean country.

Such announcements tend to fuel hyperinflation and arouse national discontent. Among the economic decrees of 2018, Maduro announced several wages increases and eliminated five zeros to the national currency, without success in the attempt to alleviate the economic crisis

The National Assembly, with an opposition majority, calculated that accumulated inflation rose to 1,698.488% last year. Never before has the country experienced these dysfunctions.

“The monetization of the fiscal deficit continues, hyperinflation continues to gain strength. The nominal wage increases will not solve the structural problems of the economy in the country,” economist Jesus Casique told El Nacional.

“We passed the test,” the president said during his speech. Since, according to Maduro, extreme poverty decreased from 4.4% to 4.3% in 2018 and Venezuela became a country with greater socioeconomic equality during his Government. In a four-hour speech he praised his administration and promised to improve the economy ahead of his new term in office.

However, the National Survey of Living Conditions, drawn up by three universities, indicates that extreme poverty grew by 61% in 2017. The study seems plausible when the current minimum wage is appreciated, equivalent to the price of 1.5 kilograms of chicken.