Venezuela’s Inflation Could Be Ended in 30 Days, Steve Hanke Proposes

• Bolivia is considering using the Chinese Yuan in international trade settlements.
• Inflation reached 108.8% year-over-year in Argentina.
• Steve Hanke believes he can end Venezuela’s inflation in 30 days with a currency-board system.

Bolivia Mulls Chinese Yuan for Trade Settlements

The government of Bolivia has announced it is considering the usage of the Chinese yuan as a replacement for the US dollar for international trade settlements. The Bolivian President Luis Arce instructed the central bank to research if the recent advancement regarding the use of the Chinese currency in Brazil and Argentina could be also be applied in Bolivia’s case.

Inflation Reaches 108.8% Year Over Year in Argentina

The National Statistics Institute of Argentina (INDEC) has delivered the price data corresponding to April, registering an inflation increase of 108.8% year over year. The inflation number jumped further higher than the 104.3% registered in March. Food and beverage items contributed the most to the rise in inflation numbers, with prices rising 10.1%. The Argentine government explained that “the exchange rate unrest in the financial dollar markets, in the last part of the month, prompted preventive price increases in many products and services of our economy.“

Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation

Steve Hanke, professor of applied economics at Johns Hopkins University, stated that he could bring inflation down in Venezuela in 30 days by implementing a currency-board system. This currency board system would involve pegging a new currency to an internationally accepted reserve asset such as gold or another hard currency like US dollars or euros and limiting money supply growth to match changes in foreign reserves held by central banks.

Latam Insights Overview

Welcome to Latam Insights, a compendium of news from Latin America during last week’s crypto and economic developments: Bolivia mulls using Chinese yuan for trade settlements; Inflation reaches 108.8% year over year in Argentina; Steve Hanke proposes 30-day solution for Venezuelan inflation