North Korean authorities have begun replacing all 5000 won bills in the country with a new note, according to sources inside the country.

The move does not represent a currency redenomination of the sort implemented in November 2009, but rather, it is a currency replacement, and for the time being only one bill – the 5000 won note ($38.45) – is being replaced.

The most surprising news is that Kim Il-sung’s likeness has been deleted from the new bill. For decades, the highest denomination bill in circulation has featured an image of Kim Il-sung, North Korea’s founding father.

The note had featured the smiling portrait in use since his death in 1994. Now, however, the front of the bill features an image of the house at Mankyungdae where official propaganda says Kim was born, and the back contains an image of the International Friendship Exhibition at Mt Myohang.

An old 100 won banknote featuring Kim Il-sung’s image. New banknotes were introduced in 2009. Photograph: Zhimin Pan/flickr

Removing the portrait of the ‘eternal president’ at this time seems particularly obtuse. After all, his grandson and the country’s current leader, Kim Jong-un, has been deliberately mimicking Kim Il-sung since the beginning of his rule in 2011. From his walk to his laugh, his hairstyle and even his speech, Kim has sought to follow in his grandfather’s footsteps. This has been done to enhance the younger man’s legitimacy and inspire nostalgia for the time before his father Kim Jong-il came officially to power, when life was better for most people in the country.

However, the move may be designed to indicate to the population that Kim Jong-un is now in a position to rule in his own right, having seized control of the armed forces, administration and Party alike, and settling his ruling system into position.

Also, by eliminating Kim Il-sung from the banknote and bringing in a less overtly propagandist image, that of the International Friendship Exhibition, North Korea may seek to symbolically proclaim that it is becoming a “normal” economically developing country, all the better to attract potential investment.

Speaking on condition of anonymity, a senior South Korean expert told Daily NK: “Kim Jong–un is looking for economic results. He’s moved away from the Kim Il-sung/Kim Jong-il era focus on heavy industry, to concentrate on things like the apartments on Changjeon St, Munsu Water Park, and Masikryong Ski Resort. He can’t actually go out and negate Kim Il-sung officially, but he can change things up to really emphasise the image of himself as leader.”

This picture, released by North Korea’s official news agency, shows labourers enjoying Munsu Water Park in Pyongyang on 8 August. Photograph: KCNA/REUTERS Photograph: KCNA/REUTERS

However, sources inside North Korea say they believe a 10,000 won bill could be put into circulation in due course, and that the new bill, when it appears, will once more feature the likeness of Kim Il-sung.

Such a step would be economically logical, since inflation continues to eat away at the value of the Korean People’s Won. For the time being, however, it is unclear when such a new bill will appear, if at all. Daily NK sources asked banking officials about the possibility, but were told: “Don’t ask”.