Currency Double Standard Riles Residents

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.