Venezuela has issued new larger denomination banknotes in response to the country's soaring rate of inflation, BBC reports.

The three notes, ranging from 500 to 20,000-bolivars, have entered circulation with the aim of making paying for essentials easier.

Inflation in Venezuela is forecast to reach 1,600% this year.

Until now, the 100-bolivar note had been the country's largest, worth just three US cents on the black market.