Venezuelan Money Supply Is Surging at the Fastest Pace on Record

(Bloomberg) -- Venezuelan money supply rose 31 percent in the week through Jan. 25, according to central bank data. That’s the fastest expansion since at least 1997 and could indicate that a panicked government has boosted spending in the face of protests, sanctions and the withdrawal of recognition by a big chunk of the international community.

Money-printing has been the driver behind Venezuela’s hyperinflation and the collapse of its currency. On this evidence, the recent strength in the black-market bolivar is illusory.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editors responsible for this story: Michael P. Regan at mregan12@bloomberg.net, Philip Sanders

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