Move restricts amount of old bills that can be traded for new, wipes out personal savings
TOKYO -- Chaos reportedly erupted in North Korea on Tuesday after the government of Kim Jong Il revalued the country's currency, sharply restricting the amount of old bills that could be traded for new and wiping out personal savings.
The revaluation and exchange limits triggered panic and anger, particularly among market traders with substantial hoards of old North Korean won -- much of which has apparently become worthless, according to news agency reports from South Korea and China and from groups with contacts in North Korea.
The sudden currency move appeared to be part of a continuing effort by the government to crack down on private markets, which have become an essential part of the food-supply system in chronically hungry North Korea.
In recent years, some market traders have stashed away substantial amounts of cash, while establishing themselves in profitable businesses that the government struggles to control.
But under the rules of the new currency system, the wealth of these traders has largely disappeared, unless it is held in Euros, dollars or Chinese yuan.
The revaluation replaces 1,000 won notes with 10 won notes, but strictly limits the amount of old currency that can be exchanged, news reports said.
According to two web-based groups with sources in the North, that limit was set Monday at 100,000 won, which at current black-market rates amounts to just $40. All North Korean currency that individuals possess in excess of that amount becomes worthless, under the revaluation.
Amid widespread protests, the limit was slightly raised to 150,000 won (about $60) in cash and 300,000 won ($120) in bank savings, according to DailyNK, an online news organization that has informants in the North.
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Over there Kimmy gets worshipped and feared as if he is a god. Here in the USA we do the same, but we worship the banker's media instead.
ReplyDeleteNorth Koreans are losers in a cartoon country with a cartoon leader. What happens to them has nothing to do with real countries.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteIs Denninger nuts? Here is what he had to say about gold related to this devaluation.
ReplyDeleteNorth Korea and Currency Devaluations
PS: No, gold won't save you if that sort of thing happens
If you have gold rather than paper, they can't deny it has value, as long as you can exchange it for something else.
@2:51
ReplyDeleteI'm going ahead and interepreting this as a warning to the U.S., from the Chinese, of what is coming our way in the next 2-6 years when total default occurs and we become openly subject to the monetary controls of International Entities.
Oops, meant '@ 5:21'.
ReplyDeleteTroops of The Red Tiger on USA soil?
ReplyDeleteBanksters will be gone, flying out on their private Gulf Streams leaving us to be rapped, killed and enslaved by the Chinese!
Oh Goodie.............
How can the self-inflicted collapse of a government that lies to, kills, tortures, and manipulates it own people be so bad? I am of course referring to the US government.
ReplyDelete6:27, you should not be accepting this as a foregone conclusion. Who is to say Russia won't invade us, like all those gun hording right-wing Red Dawn fans are expecting? Who is to say all the super powers won't nuke themselves BOTH into quarantine? Who's to say none of these wont happen? Starting to see my point?
ReplyDeleteYeah, I think you have seen Red Dawn too many times now that I think about it...
ReplyDeleteUm, who is to say WE won't invade Russia or China. We are, after all, surrounding both countries and inciting war on more than one front near their backdoors. It is America that has been the agressor for the last 50 years, already bringing us to the verge of nuclear war more than once.
ReplyDelete@ 2:40
ReplyDeleteJust reading the writing-on-the-wall. And you seem to be missing a larger point that if China is involved, then so is Russia - and vice versa. They frequently share technology and conduct joint military exercises & training. Incidentally, Russia funds & supplies Venezuela, and conduct business with Iran. China, meanwhile, provides the life-support for North Korea, who in turn shares technology & trades with Iran, who trades with Venezuela, who trades with Russia, who trades and weaponizes/militarizes in harmony with China. So there you go
No, I am not missing the point. China and Russia are distant allies, but not partners. This has been the dynamic for many, many years. Furthermore, Russia does not "fund" and "supply" Venezuela. They are strategic partners and sometimes trade military sales for oil, etc. Your understanding of N Korea and China is sseverely flawed and misinformed. In fact, I don't think you have really looked at this issue apart from making some guesses and assumptions about it. Their relationship is cordial, similar to the US and Mexico or Canada, except the fact that N Korea is struggling far more and the US is still at war with it. Stop believing in the AXIS of EVIL bullshit that the Bush Administration fed you for several years. And there you have it.
ReplyDeletewow, let me get pen and paper, and take notes! I think you are all nuts.
ReplyDeleteAgreed.
ReplyDeleteNice post - South Korean won Currency ..Keep Posting
ReplyDeleteJack
South Korean won Currency
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