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 an effort by the government to crack down on private markets, which have become essential in chronically hungry North Korea.
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 groups with sources in the North, that limit was set Monday at 100,000 won, which at current black-market rates amounts to about $40. All currency that individuals possess in excess of that amount becomes worthless under the revaluation.
Amid protests, the limit was raised to 150,000 won (about $60) in cash and 300,000 won in bank savings, a news website said.
