N. Korea confirms currency reform

PYONGYANG, North Korea, Dec. 4 (UPI) -- A North Korean central bank official said the communist country has reformed its currency to tackle inflation and normalize the economy.

The official's statement, appearing in Choson Sinbo, a pro-Pyongyang newspaper based in Japan, confirmed earlier reports that North Korea, in an apparent effort to flush out hidden wealth and fight inflation, had begun using a new 10 won note in place of the old 1,000 won bill, Yonhap News Agency reported.

"This currency exchange is aimed at first raising the value of our currency to smoothen its circulation," North Korean central bank official Jo Song Hyon told Choson Sinbo in an interview Thursday. Choson Sinbo has an office in the North Korean capital, Yonhap said.

North Korea's official state media, however, has yet to confirm the revaluation.

The bank official was quoted as saying North Korea has suffered economic hardship since the 1990s.

"The imperialists' vicious isolation and suffocation maneuvers against us, subsequent natural disasters and the fall of the socialist market have posed great impediments to the normal economic development of our country," Jo said.

He said North Koreans have until Sunday to exchange their money for the new currency.

"Bills that were not exchanged during the period and our currency that has been illegally taken outside the country will become entirely invalid," he said.