Hyesan authorities have recently started clamping down on money changers, Daily NK has learned.
“Money changers are facing a tougher crackdown than ever before. Since all the money changers are lying low, it’s hard to find anyone willing to process a currency transaction,” a source in Yanggang Province told Daily NK on Aug. 17, speaking on condition of anonymity for security reasons.
According to the source, the police in Hyesan have been rounding up any money changers they can find and sending them to disciplinary labor centers. The first money changers to be arrested were the ones famous for handling the most money, which has created a chilling effect on the entire industry.
“The police have recently been raiding the homes of well-known money changers. If any US dollars or Chinese yuan turn up in the search, the money is all confiscated and the money changers sent to a labor camp. When only North Korean money turns up, the money is still confiscated for being the proceeds of criminal behavior, much to the consternation not only of the money changers themselves but also everyone else who hears about it,” the source said.
Confidence in the national currency has fallen since the currency reform of 2009, motivating North Koreans to hold foreign currency, which is regarded as safer. In North Korea, it is illegal to trade or possess foreign currency.
So North Koreans have continued to surreptitiously use and trade foreign currency even as the authorities have grown harsher in their enforcement of the rules against foreign currency transactions.
Given the persistence of public reliance on money changers instead of official banking services, the North Korean authorities have taken steps to put money changers in custody, the source explained.
“In the city of Hyesan, ten or so money changers who operated on a large scale were arrested by the police and sent to a labor camp. The police raids were planned in secret and carried out without warning, leaving the money changers with no way of evading arrest,” the source said.
A couple of the arrested money changers managed to draw upon their connections to secure their release, but they are currently in hiding out of fear of further arrests.
The crackdown has cast a pall on the money changing market — a surreptitious affair at the best of times — and has driven it even further underground.
“Crackdowns on money changers aren’t anything new, but it’s uncommon for ten or more people to be arrested and booked in a single sweep. Since the police are staking out the typical money changing locations and casting their nets wide, even low-level money changers have made themselves scarce,” the source said.
“Even so, people aren’t about to put their money in the banks. The money changers will be back in business before too long.”
Translated by David Black. Edited by Robert Lauler.
Daily NK works with a network of sources who live inside North Korea, China and elsewhere. Their identities remain anonymous due to security concerns. More information about Daily NK’s reporting partner network and information gathering activities can be found on our FAQ page here.
Please direct any comments or questions about this article to dailynkenglish@uni-media.net.
