North Korea Devalues Currency

The government of North Korea has decided to devalue its currency at an exchange of 100 old Won to 1 new won.  Allegedly an attempt to punish those that have profited from the black market, the government is limiting the amount each resident may exchange to $150,000 won.  This limit has caused stores, restaurants, and all other forms of commerce to close until the new currency takes effect.  It has also led to at least 2 suicides as residents deal with the harsh reality that their life savings has been reduced to at most, $150.

This act is not unique to North Korea.  Many countries including Argentina have replaced currency in the past in order to curb inflation.

photo credit: sludgegulper