North Korean residents in border regions are voicing discontent about a policy imposed on them that forbids them from exchanging foreign currencies, namely US dollars or Chinese yuan [RMB]. Especially frustrating is the fact that while the authorities restrict the residents’ use of outside currencies, market management flouts this law by accepting vendor fees in RMB. 

“These days we aren’t allowed to use Chinese money at the markets, but that hasn’t stopped the market management from accepting the vendor fees [the regular payments sellers make to market management in exchange for renting a stall] in Chinese Yuan,” a source from Yangkang Province reported to DailyNK on April 1st. “There is definitely a backlash from residents over this. They demand to know why they are forbidden from using foreign currency while authorities are seemingly exempt from this regulation. Some have even directed their complaints to the Ministry of People’s Security [MPS] officials patrolling the markets. 

North Korean authorities began forbidding the use of foreign currency in certain parts of border regions at the end of last year. This move one among many of the perpetual efforts by the authorities to crack down on residents’ dependency on foreign currency, which skyrocketed after the disastrous currency redenomination of 2009.   

He added that usage of Chinese yuan, highly preferred by residents for its value over the North Korean won [KPW: Korean People's Won, in the markets is an open practice. “Witnessing this injustice, it's evident that normal people are subjected to strict laws, but market management is not," he said.

By way of example, the source introduced a recent incident at Hyesan Market where two vendors set up a display marking the price of clothing in RMB. Suddenly, two MPS officials patrolling the area repossessed the sellers’ money bag after seeing the display, to which the merchants responded by screaming in protest at the guards. 

“The guards took the bag right off one of the vendor’s hip to check to whether it contained any foreign currency. Not content to stop there, the guard continued to repossess all their goods  as well. At that point the vendors suddenly shouted, ‘You can’t punish us at whim like this; if you’re going to enforce a law, make it consistent!’” he said, recounting the episode. “People in the area took notice of the situation and grew upset. Sensing this, the security guard changed his mind and told the vendors they could retrieve their money bag at the security office and then he left in a rush.”    

“If you pay in Chinese currency the vendor fee at Hyesan Market for one day is 1 RMB, but if you pay in KPW the fee is 1350 won. It’s easy to pay in RMB because it only takes a single bill, but when you pay in KPA it takes a 1000 KPW [0.13 USD] note, a 200 KPW [0.03 USD] note, and a 50 KPW [0.006 USD] bill,” he explained, adding that this inconvenience gives vendors and market management one thing to agree on or, more accurately, complain about.

“We worked hard to earn and save money but we were all ruined by the currency reforms in 2009. After an experience like that, who would want to rely on the KPW? These days, even little kids know that Chosun [North Korean] cash is of no value,” he pointed out. 

Quick to point out that “the security officials who tell the traders not to use foreign currency are usually the ones with the most foreign cash in their pockets,” the source said while residents have largely become resigned to authorities cracking down on people for crimes that they themselves are guilty of, foreign currency and its broader implications for residents' lives are considered another matter altogether--a matter warranting backlash when challenged. “The injustices are stacking up,” he concluded.

*The contents of this article were broadcast to the North Korean people via Unification Media Group.