North Korean Currency Revalued, People Lost Savings

The government of North Korea has revalued, reissued and redenominated its currency from a ratio of 100 Won (old) to 1 Won (new). However you call the move, the people are the ones affected as millions of savings were figuratively and literally wiped out.north-korean-won

Businesses operating only in the local currency were closed during the one week period of blocked usage of the currency. Only businesses with foreign currencies being used (such as foreign exchange) were able to continue trading.

Originally only a cap of 100,000 Won were allowed to be exchanged for the new notes. The people however, demanded that more money be allowed to be exchanged. The government raised the limit to 150,000 Won for cash and 300,000 for bank savings.

A citizen therefore with 150,000 Won will go home by the end of the week with just 1,500 won.

It has been speculated that the move was made to control price inflation, destroy fortunes of black market money traders and remove any kind of free enterprise.

The Won was last revalued in 1959.