Venezuela Has Such Insane Inflation That iPhones Cost $47,000

Venezuela is experiencing an economic crisis, and it is causing the price of everyday gadgets to skyrocket. It’s so bad that, according to the official exchange rate, an iPhone 6 costs over $47,000, Bloomberg reports. The problem is twofold: There’s a nationwide shortage of top-tier smartphones while inflation is reaching never-before-seen heights. The Venezuelan bolivar (the country’s currency) has two “official exchange rates,” 6.3 and 12 bolivars per dollar, that the government uses to calculate purchase prices for essentials such as medicine. But the bolivar’s plummeting black-market rate — which is about 456 bolivars for every dollar — is what leads to the insane iPhone price, when calculated using the official rates. Now a mid-level smartphone costs about 17,000 bolivars, equal to “2.3 months of pay at minimum wage.” A new iPhone 6 goes for 300,000 bolivars. At the lowest official exchange rate, that’s $47,619. But at the black-market rate, that’s $657 — about normal for an unsubsidized phone.

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