CARACAS, March 23 (Xinhua) -- Venezuela plans to lop off three zeros from its currency "to simplify" financial transactions, the president of the Central Bank of Venezuela (BCV), Ramon Lobo, said on Friday.

A day after President Nicolas Maduro announced the measure, Lobo went on state-run VTV to explain the planned changes to the existing bolivar banknotes and coins, which will be phased out on June 4.

"The currency redenomination, put simply, means removing several units from the bolivar to simplify transactions and operations," said Lobo.

Venezuela's economy has suffered from shortages, hoarding and price gouging as part of the power struggle between the socialist government and conservative opposition, which has led to rampant inflation.

Coupled with a devalued currency, it means purchasing everyday items often requires wads of bills.

"The economic warfare has also entailed an attack on our currency," said Lobo.