DPRK official: Currency revaluation aims at overcoming inflation

11:46, December 06, 2009      

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The revaluation of the currency of the Democratic People's Republic of Korea (DPRK) aims at "overcoming the abnormal inflation" and raising the purchasing power of the DPRK won, a Japan-based Korean newspaper reported Saturday, citing a DPRK central bank official.

The measure will help increase the circulation of the money, secure the interests of the labors and stabilize their life, the newspaper Choson Sinbo quoted Jo Sung Hyon, the DPRK central bank official, as saying.

Because the economy has stepped onto a healthy track, the DPRK has the ability to revaluate the currency, Jo said

The revaluation of the DPRK won would also boost the use of modern ways of money printing and "improve the ideological and artistic content" of the won, Jo said.

Every household could change its old bills at the exchange rate of 100:1 -- 100 old won to 1 new won -- at the exchange agencies in their neighborhoods from Monday to Sunday, Jo said.

The rate of bank savings will be 10:1, he said, adding that the purpose was to encourage people to save their money in banks.

Jo expected that the price level would not change much after the revaluation, and estimated the price might "decrease a bit."

"The country's economy will mainly rely on planned supply system, not on the market," he said.

The government made ample preparations before suddenly announcing the revaluation, Jo said.

"In order to leave no chance to let the illegal money become legal," the government kept the revaluation secret until the last minute, he said. He said the revaluation might initially cause some problems but things would soon return to normal.

The move will "give favored treatment to those who make earnings by their honest labor," so it was "welcomed and supported" by the majority of workers, farmers and public officers, Jo said.

He said the DPRK would take additional measures to rectify the economic order. Foreign currency would no longer be allowed to be used directly in the DPRK before changing to the DPRK won, he said.

Source: Xinhua
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