North Korea Revalues Currency, Causing Increase in the Value of the US Dollar and Chinese Yuan
In a move which has surprised the world and might have an impact on markets everywhere, and has happened after 17 long years, North Korea has sharply revalued its currency, as has been confirmed by Chinese state media and South Korea.
The development is being seen by many as the nation's way of controlling inflation and curbing the black-trade market.
The measures appeared to be a crude form of shock therapy intended to severely punish people involved in black market trading, which had begun to take root in North Korea in recent years as the country’s central planning system broke down.
All cash transactions in North Korea have been frozen after the Government’s shock decision to revalue the won currency in an effort to crack down on the country’s burgeoning free-market economy.