N. Korea Carries Out Currency Redenomination

100 to 1. Citizens panick.

The news is from Japan's Yomiuri Shinbun.

North Korea carries out currency redenomination, citizens in panic (12/1/09 Yomiuri Shinbun, original in Japanese)

"(Seoul - Masahiko Takekoshi) South Korea's Yonhap News Agency reported that North Korea redenominated their currency (North Korean won) on November 20, citing several North Korean trade representatives in China.

"100 units of old North Korean won are to be exchanged for 1 unit of the new currency. It is the first new currency issue in North Korea since 1992.

"According to experts in Korea, North Korea's partial market reform that started in 2002 has resulted in the price of rice rising 50-fold, and the price of daily goods rising 20 to 30-fold, as the value of the currency plunged.

"In addition to supressing inflation, the redenomination is aimed at crack down on the private assets in the black market. According to Yonhap News, the currency exchange started on November 30 at 2:00 PM. Citizens, fearful that the government would find out about their hidden assets, flooded the black market in a panic to exchange into Chinese yuan and U.S. dollars.

"Korea's Daily NK, Internet newspaper specializing in North Korea says the exchange covers both paper currency and coins, and the exchange has started at North Korean central bank and its branches. Korea's Ministry of Unification says it cannot confirm the redenomination at this time."

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