Venezuela is far from Australia and, until its recent collapse, had not really been on the media's radar.

Yet close to four million Venezuelans have left the country since 2007, with two million in the past two years alone — that's a higher rate than Syria. And inflation is due to hit 1,000,000 per cent by Christmas

The South American country may seem far away, but its economic prospects have a greater impact on Australia than it first seems, from petrol prices to the Venezuelan communities in our suburbs.

What's the latest?

The IMF is forecasting 1,000,000 per cent annual inflation by the end of 2018. To cope, the government just adopted a new currency — the "Sovereign Bolivar" — eliminating five zeros from the old currency's value.

It is meant to be pegged to a government-sponsored cryptocurrency called the "petro" which is supposedly tied to the value of the oil barrel. Yet the new measures seem bound to fail.

The government has tried to force private businesses to keep their prices fixed in the face of spiralling inflation, but this has only led to increasing scarcity of essential goods as businesses refuse to bear the losses.

Other measures — like raising the minimum wage by 34 times — are still under implementation and their full impact remains to be seen.

The black market (the exchange rate that really rules the economy) remains a key source for dollars, and the country's inflation does not seem to abate.

The government has also tried to woo capital from allies like China and Turkey, but the extent of their support is uncertain.

Essential services like waste collection are neglected in the barrios of Caracas. ( ABC News: Matt Davis )

A regional migration crisis

Meanwhile, Venezuelans have done the unprecedented: they are giving up on their country.

Venezuela had never experienced significant trends of outward migration until recent times.

The Economist forecasts that, if this trend continues, several millions more might leave the country in the next couple of years.

Usually, neighbouring Colombia is the first stop. Some hundreds of thousands stay there, others continue their path south, settling wherever there is an opportunity: Ecuador, Peru, Chile or Argentina.

We are beginning to see different national responses to the crisis, including some worrying initiatives.

For example, Brazilian President Michel Temer recently deployed armed forces to Roraima, the Brazilian state that borders Venezuela, to "guarantee law and order" in the region.

Meanwhile, Ecuador and Peru recently sought to restrict Venezuelan migrants from entering their land.

A regional response remains elusive, while an end to the migration crisis is not in sight.

Peru said it would exempt some women and children from the passport requirement. ( AP: Marting Mejia )

Why should Australia care?

Increasing political instability in the region should directly concern us and Venezuela's economic prospects matter for Australia.

According to DFAT, Australia only has "modest commercial cooperation" with Venezuela, with trade totalling $77 million in 2016. This might be higher were it not for Venezuela's diminishing wealth and conditions that make it unfriendly for foreign investors.

For example, Venezuela has repeatedly tried to lure Australian investors to the Orinoco Mining Arc, but environmental and human rights concerns, plus the low levels of law enforcement, make investment a risky proposition for Australian interests.

But Australia is more significantly embroiled with neighbouring countries affected by the Venezuelan migration crisis.

There are significant Australian mining interests on the border with Colombia, an area that is affected by the Venezuelan crisis. Chile and Peru — countries that are also experiencing the arrival of large numbers of Venezuelan migrants — are members of the TPP and close partners of Australia in Latin America.

Australians also remain interested in traveling to the countries affected by the crisis.

Mr Urribarri said 2 million Venezuelans have left the country in the last two and a half years. ( AP: Martin Mejia )

You'll feel it at the bowser

As petrol prices continue to rise, it's worth remembering Venezuela's significance in the oil market.

Venezuela is home to the world's largest oil reserves, but its industry is marred by corruption and mismanagement.

The Venezuelan crisis is contributing to the disruption of global oil prices due to the sharp reduction in output from the country.

Brent crude oil prices have hit a three and a half year high above $80 a barrel in part due to the worsening political and economic situation in Venezuela. These disruptions will continue as the oil industry further collapses.

People in Venezuela tell us they eat only once a day so there'll be something to give the children for dinner. ( ABC News: Matt Davis )

Venezuelans in our midst

Putting aside economic considerations, there are other compelling reasons to care about the Venezuelan crisis.

According to the last census, there are about 6,000 Australian residents of Venezuelan origin — one of the largest groups from Latin America. They are facing this collapse from a distance, assisting relatives and friends with emotional and financial support as best as they can.

This is a major humanitarian crisis that needs our attention. While it seems far away, it matters, and there is much that we can do in response. As a member of the United Nations Human Rights Council, Australia recently supported a landmark resolution expressing concern about human rights violations in Venezuela.

As the crisis persists, Australia could explore additional ways of assisting its partners in the region in supporting Venezuelan migrants. We have ample expertise and capacity to support different initiatives and efforts.

Alexandra Phelan is a PhD candidate at Monash University and Dr Raul Sanchez Urribarri is assistant professor at La Trobe University.