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.
Apparently the North Korean Government has punished those who have been saving their cash and running businesses that the government hasn't been able to control. Their solution? To devalue the currency, bankrupting these individuals.
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 $40. All North Korean currency that individuals possess in excess of that amount becomes worthless under the revaluation.
Amid widespread protests, the limit was raised to 150,000 won in cash and 300,000 won in bank savings
Here's the kicker:
the government did not explain why the revaluation had occurred.
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