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Venezuela's economic crisis, exacerbated by the lack of oil export revenue, has defied bond skeptics this year even as hyperinflation creates a burgeoning currency crisis.

Venezuela is retiring and replacing its 100-bolivar note, the country's largest bill worth only pennies on the dollar. Dimitra DeFotis for Barron's

Earlier this month, Venezuela officially entered the hyperinflation record book. On Monday, President Nicolas Maduro demanded a 72-hour closure of Venezuela's border with Colombia, a conduit for alleged currency smuggling but also an important source of food and household staples for Venezuelans. Mimicking India's November demonetization, Venezuela is retiring its 100-bolivar note, the country's largest bill worth only pennies on the dollar, and issuing new paper money, according to AP via the Los Angeles Times. Nomura Securities' Sioban Morden, head of Latin America fixed-income strategy, writes: