A million to 1: Venezuela's currency losing 6 zeros

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FILE - In this March 16, 2021 file photo, a woman shows a new 500,000 Bolivar bill after withdrawing it from a bank in Caracas, Venezuela, after the Central Bank of Venezuela (BCV) launched three new banknotes to increase the highest denomination of paper money from 50,000 to one million. On Aug. 5, Venezuela announced it will eliminate six zeros, effective Oct. 1. (AP Photo/Ariana Cubillos, File)

CARACAS, Venezuela (AP) — Venezuela says it will make a million-to-1 change in its currency soon, eliminating six zeros from prices in the local currency as hyperinflation continues to plague the troubled South American nation.

Venezuela’s central bank on Thursday announced the change to the bolivar will go into effect Oct. 1.

The new 100 bolivar bill will be the highest denomination. It is equivalent to 100,000,000 of the current bolivar.

This is the third adjustment since socialist leaders began governing Venezuela. The bolivar lost three zeros in 2008 under now-deceased President Hugo Chávez, while his successor, Nicolás Maduro, eliminated five zeros in 2018.

Venezuela is in its sixth year of recession. Millions live in poverty, with high food prices that are commonly set in U.S. dollars and low wages.

The 1 million bolivar bill is currently the highest denomination, but it is scarce. More than seven of those bills are needed to buy a 1.3-gallon (5-liter) bottle of water,which cost 7.4 million bolivars or $1.84 dollars on Thursday.

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