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December 1, 2009
North Korea Revalues Currency by 100-to-1
Something tells me this isn't going to work:
In an alleged bid to curb inflation and suppress its growing black market, North Korea implemented a currency revaluation on Monday, according to Yonhap, the South Korean news agency.
The exchange rate between old and new currencies is 100 to 1, with the old denomination of 1,000 won notes being replaced by 10 won notes.
It is the first time in 17 years that the hermit kingdom has revalued
its currency and the effect in the capital was instant. "Many people were taken aback and confused," said one source to Yonhap. "Those were were worried about their hidden assets rushed to the black market to swap them for dollars or Chinese yuan. The yuan and the dollar jumped," he added.
"When the news spread in the jangmadang (markets), people panicked," reported the Daily NK newspaper, quoting a source in the North Eastern province of North Hamkyung. Another source, in the Western city of Sinuiju, on the border with China, told the paper: "Traders gathered around currency dealers. Chaos ensued when currency dealers tried to avoid them."
It's really shameful that a country has mismanaged its currency so badly.
Why are you looking at me like that?
Posted by edelfenbein at December 1, 2009 1:22 PM
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