In Venezuela, the bolivar, the domestic currency, lost value because the government printed excess amounts of money to fund its budget deficit. This situation can happen if the:

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When the central bank is not independent of the political process, there is a risk of government interference in economic policy, including the printing of excess money to finance budget deficits. This often leads to inflation and a decline in the value of the domestic currency. This is the situation in Venezuela, where the government has been accused of manipulating economic data and making decisions based on political considerations rather than sound economic principles.

In Venezuela, the Bolivar, the Domestic Currency, Lost Value Because