Asia in 3 minutes: As desperation mounts in India for loose change, China splashes out US$1b in five minutes

Modi sparks panic and long queues by suddenly pulling banknotes

Indian banks had to call in thousands of police officers to handle queues outside branches as people tried to exchange banknotes that Prime Minister Narendra Modi abruptly pulled from circulation. Modi announced the move to ditch all 500 and 1,000 rupee notes – worth a combined US$256 billion – on Monday. He said they fuelled corruption, were often forged and even paid for attacks by Islamist militants against India. Lines formed before banks reopened, having shut on Wednesday to prepare for the change. People tried to swap the worthless cash for smaller bills or new 2,000 rupee notes, supposedly harder to forge, being rushed into use.

What next? Finance Minister Arun Jaitley said India was moving to a “cleaner system”, and denied the government was resorting to arbitrary and authoritarian methods. He said it would take two or three weeks for new 500 and 2,000 rupee notes to be put into circulation.

Park’s power wanes further with PM concession, but enemies demand more

South Korean President Park Geun-hye has watched her power and popularity erode rapidly, engulfed by the scandal surrounding her top adviser Choi Soon-sil. Investigators are looking into whether Choi made major government decisions and used her relationship with Park to force companies to donate money to two foundations she controlled. Scrambling to defuse a massive scandal, Park on Tuesday conceded to lawmakers the power to name her new prime minister, a move that could seriously hurt, or even destroy, her ability to govern. But lawmakers, who must still settle on a nominee, demanded even more. Some opposition members want the president to abandon all domestic affairs and focus only on foreign matters.

What next? The scandal also threatens to embroil K-pop star Psy, who became a global sensation with his song Gangnam Style in 2012, after the singer postponed a planned appearance on a popular talk show. Many believe he is uncomfortable facing questions about his relationship with other artists, who have in turn been linked to Choi.