Amid an acute national shortage of banknotes, the town of Elorza in western Venezuela has started issuing its own paper currency.

Local officials said the currency would make it easier for residents and visitors to trade during the town’s festivities, which start on Monday.

They said rampant hyperinflation and a scarcity of bolivares, the national currency, had affected trade in Elorza.

The new currency can be bought at the Mayor’s office via bank transfer.

The paper bills feature the face of independence hero José Andrés Elorza and, like the town, are named after him.

The governing PSUV Party, said people don’t have bolivares to spend, that’s why they created bills of two denominations.

The party said 2bn bolivares had already been sold.

Local businessman Canuto García explained the town came up with the idea after it noticed that money did not flow at local festivities in nearby cities.