Clara Tanone - Q12: Why is the North Korean Won worth more than the South Korean Won?

[Clara Tanone]

Hey!

 

Any ideas or speculations?

 

Regards,

Clara Tanone

[John Cuthber]

At least in part because the North Korean Won crossed out 2 zeros on the value.

 

https://en.wikipedia.org/wiki/North_Korean_won#2009_revaluation

[cladking]

The value of currency in modern economies is irrelevant to economic considerations. It is arbitrarily chosen by central banks.

 

There is some meaning to the value of currency times the total quantity of currency and, no doubt, this total is far higher in South Korea. But new conflations are introduced because things like total debt and purchasing power become germaine.