The government reportedly eases restrictions on private markets after the currency revaluation of 2009 wiped out many cash savings in the country.

In November 2009, North Korea initiated a currency revaluation and placed restrictions on the use of foreign exchange.

But the consequences of currency revaluation for Asia have already been immense.

If there is a currency revaluation or appreciation the same reasoning leads to an inverted J-curve.

China's currency revaluation was not as big as the blame-Beijing-first crowd in Congress has been demanding.

"What has happened in the market is a complete overreaction to everything" from political pronouncements to currency revaluations, he said.

Hardest hit during the last two years of steady currency revaluation, officials say, are Taiwan's small and medium-sized enterprises.

A disastrous currency revaluation in November, meant to curb free markets, sparks inflation and deepens food shortages.

Moreover, a currency revaluation could help damp the possibility for inflation and cool the economy if it goes into overdrive again.

He said the currency revaluation was an example of the government's attempt to regain control of the economy.