'Chaos' hits in North Korean currency

Changes to foreign currency and economic policy have wreaked 'chaos' in North Korean currency markets and daily life.

In November 2009, national policy in the country changed to prevent the use of foreign currency in the country.

A major revaluation of the North Korean currency was also implemented.

The country announced that individuals must trade in their old currency to be replaced with new currency; however limits were imposed on the amount which could be traded, resulting in many families losing out on their life savings.

Spiralling inflation followed the move and reports from South Korean newspapers show that while one US dollar would have fetched around 98 won last November, today it is worth between 300 and 500 won.

Pak Nam-Ki, the North Korean Communist Party's director for planning and finance, who was responsible for the chaotic move, has since disappeared from view according to intelligence reports relayed to the Associated Press.

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Posted by Thomas Smith