This country is once again in the global discussion after the US arrested Venezuelan President Nicolas Maduro as part of a military operation. Amidst the attacks and political turmoil, people are also paying attention to Venezuela’s economy and its currency. This question is in the minds of many people that despite being a country with the world’s largest crude oil reserves, why is Venezuela’s currency so weak? Meanwhile, if we compare the currency of India and Venezuela, a lot of difference is seen.

India and Venezuela have long had good diplomatic and economic relations. Both countries respect each other’s sovereignty. Venezuela has been an important partner for India in the energy sector. In the year 2024, India had imported about 22 million barrels of crude oil from Venezuela. It is clear from this that Venezuela plays an important role in India’s energy security. In such a situation, when Venezuela’s politics and economy are in crisis, it also impacts the global market and countries like India.

Why did Venezuela’s currency weaken?

The name of the currency of Venezuela is Bolivar, which is called VES internationally. In the last decade, it has been among the fastest falling currencies of the world. Hyperinflation, economic mismanagement and political instability in the country have almost destroyed the strength of the Bolivar. In the year 2017, Venezuela officially accepted the state of default i.e. bankruptcy. After this the confidence of foreign investors was completely broken. Economic sanctions imposed by America and Western countries also worsened the situation. The decline in oil production and the weak condition of the government oil company did not give the economy a chance to recover.

impact on common people

The biggest impact of Bolivar’s weakness has been on ordinary citizens. People have to spend large amounts of cash even for everyday needs. Sometimes prices in shops change several times a day. For this reason, people have started trusting foreign currencies like dollar more.

How much will 10,000 Indian rupees be worth in Venezuela?

If we talk about currency value, then according to the report of Vice.com, 1 Indian Rupee is equal to approximately 3.38 Venezuelan Bolivar. According to this, 10,000 Indian rupees is equal to about 33,850 bolivar in Venezuela. However, this rate does not remain constant. Currency exchange rates in Venezuela often vary depending on market conditions and political circumstances. Still, this figure clearly shows that the Venezuelan currency is very weak compared to the Indian rupee.

Why is there economic crisis despite having oil?

This question often arises that when Venezuela has the world’s largest oil reserves, then why is it so economically weak. The answer is heavy and thick crude oil, which is expensive to extract and process. Also, old technology, lack of investment and international sanctions have limited the earnings from oil.

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There are many countries in the world whose currency is more valuable than the Indian rupee. The names of Kuwait, Bahrain, Dollar, Pound and Euro are included in this list. Apart from this, the value of currency of Jordan, a Muslim country, which has a population of only 1 crore 12 lakh, is also much higher than the Indian Rupee. According to the report of Vice.com, the price of 1 Jordanian Dinar (JOD) is approximately equal to Rs 126.8 in Indian currency. Whereas 1 Indian Rupee is equal to only 0.00788 Jordanian Dinar in Jordan. According to this, if an Indian earns only 800 Jordanian Dinar in Jordan, then its value in India will be Rs 1 lakh 14 thousand.

In terms of value, the Jordanian Dinar ranks very high. It is considered to be the fourth most high-value currency in international ranking. In this list, only Kuwaiti Dinar, Bahraini Dinar and Omani Rial come ahead of it, hence JOD is counted among the most stable and reliable currencies of the world.

Why is the Jordanian Dinar so expensive?

Many people think that only oil-rich countries have strong currencies, but Jordan is an exception. Despite the absence of large oil reserves here, its currency remains at a consistently high level. The biggest reason for this is its economic structure. Jordan keeps its currency pegged to the US dollar at a stable rate, which prevents sudden fluctuations in the market. Due to this stability, confidence in the currency remains strong and the risk of international investors is reduced.

Also, the Central Bank of Jordan adopts a very controlled monetary policy. The supply of currency is kept limited, so that the price of JOD does not fall over time. Jordan’s economy may be small in size, but due to it being disciplined and stable, its currency always remains at a high value.

Why is the Indian Rupee weak?

The value of the Indian Rupee is much lower against the Jordanian Dinar, as the INR is a free-floating currency. Its rates vary depending on many factors like international trade, crude oil price, global economy and political stability. This is the reason why there are more fluctuations in the rupee and its value remains relatively weak.

Who controls the Jordanian dinar?

The entire currency system of Jordan is managed by the Central Bank of Jordan. Issuing bank notes, determining the supply of coins and making currency policies. Everything is under the control of this institute. Since its formation in 1964, Jordan has achieved continued success in keeping its currency strong and stable.

Jordanian notes and coins

All notes and coins in circulation in Jordan are printed and issued by the Central Bank. This control protects its currency from uncontrolled markets and keeps the JOD among the most stable currencies in the world.

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