World - - Dec 13,2016
Venezuela has taken a stern step by blocking its border with Colombia, a stated measure to tackle smuggling gangs during the 72-hour period planned for currency swapping.
According to the President of Venezuela, the mafia which is operational on the border regions have caused huge damage to the country’s economy. In order to curb further damage, Nicolas Maduro announced on Monday night that Venezuela’s border with Colombia will remain shut for the next 72 hours.
Maduro blamed the “mafias” for transporting the nation’s money to Colombia. This action has been taken so as to safeguard the procedure of bill exchange that has already started this week.
Over the past few years, several goods subsidized by Venezuela's socialist government, primarily diesel and petrol, are traded at huge profits across the Colombian border.
Venezuela had taken a similar step in August 2015, as it closed most of its border crossings leading to Colombia. However, after a gap of one year, the border was partially reopened. The Colombian government criticized this move since Venezuela never informed or tried to consult.
This time, Maduro announced that the borders would be unblocked once the exchange operation of the 100-bolivar notes is successfully regulated.
The government launched a statement that closing the border was required "to counteract the criminal attacks against our currency."
One of the strongest reasons which boosted this decision was the information regarding warehouses full of 100-bolivar notes spotted in the Colombian cities of Cartagena, Cucuta, Buaramanga and Maicao.
The implementation is quite serious as Maduro revealed that "I have given the orders to close all land, maritime and air possibilities so those bills taken out can't be returned”.
Venezuela is currently surrounded by hyperinflation which has destroyed the economy from all ends. The rate of inflation has surged by 50% in the last 30 days.