Venezuela slashes 6 zeroes from currency

Venezuela has slashed six zeroes from its inflation-ravaged currency, the bolivar. The measure is aimed at simplifying the monetary scale amid skyrocketing prices and a sluggish economy.

On Friday, the South American nation's central bank redenominated a million bolivars as one bolivar.

Political rifts have plunged Venezuela into a prolonged period of hyperinflation. Opposition forces say the rate in August was an annualized 1,743 percent.

The country has already slashed three zeroes from the bolivar in 2008, and five more in 2018. But its value has not stopped falling. Many people use the US dollar for day-to-day purchases.

Some local experts question the effectiveness of redenomination. They say the government lacks specific economic and monetary measures to tackle the problem.

The coronavirus has compounded Venezuela's economic hardship. The country once thrived on oil production, but many people are now living in poverty.