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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Amid increasing tension with America, several explosions were heard in Caracas, the capital of Venezuela. According to the information, the US Army carried out an air strike in Caracas, after which several explosions were heard throughout the city. After the air strike by the US Army, Venezuelan President Nicolas Maduro and his wife have been captured by America and both are currently in America’s custody.

After the attacks by America, Venezuela also came into discussion because Venezuela has the largest oil reserves in the world, yet it is among the poorest countries. In such a situation, let us now tell you why Venezuela is so poor despite having the world’s largest oil reserves.

The world’s largest oil reserves, yet the situation is bad65558/

According to Al Jazeera report, Venezuela has the world’s largest proven oil reserves. By 2023, Venezuela had about 303 billion barrels of oil. Despite this, Venezuela earns very little from the export of crude oil and is counted among the poor countries of the world. After Venezuela, Saudi Arabia is at second place with 267.2 barrels, followed by Iran with 208.6 barrels and Canada at third place with 163.6 barrels. These four countries together own more than half of the global oil reserves. If compared with America, America has about 55 billion barrels of oil reserves, whereas Venezuela’s reserves are five times more. Despite this, Venezuela is far behind America in oil income. A major reason for this is considered to be international restrictions and limited production.

Why is Venezuelan oil sold at low prices?

Most of Venezuela’s oil reserves are in the Orinoco Belt, where heavy and high density crude oil is found. This type of oil is expensive to extract and process. It also contains high amount of sulfur, due to which this oil is sold at a low price in the international market. The country’s state oil company PDVSA has the entire responsibility of oil production, but due to old infrastructure, lack of investment, mismanagement and international sanctions, Venezuela is not able to take full advantage of its huge oil reserves.

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