<\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n
The North Korean authorities have ordered However, the source reported little expectation that the policy will continue for long, much less that it has a chance of succeeding.<\/span><\/p>\n The Pyongyang source told Daily NK on the \u201cIt emphasized that there is a grace \u201cHowever, rather than going to the North Korean civilians have long been wary Since then, the authorities have tried a number of ways of \u201cThe Upper [the authorities] have tried a \u201cThis kind of currency control policy <\/p>\n","protected":false},"excerpt":{"rendered":" The North Korean authorities have ordered residents of Pyongyang to convert hard currency holdings in US Dollars and Chinese Renminbi to North Korean Won, a source from the North Korean capital has informed Daily NK. The order was accompanied by the threat of forcible expropriation if the process is not complete within a month. However, […]<\/p>\n","protected":false},"author":122,"featured_media":25801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[645],"tags":[],"class_list":["post-25799","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"yoast_head":"\n
\nresidents of Pyongyang to convert hard currency holdings in US Dollars and Chinese
\nRenminbi to North Korean Won, a source from the North Korean capital has
\ninformed Daily NK. The order was accompanied by the threat of forcible
\nexpropriation if the process is not complete within a month.
\n17th<\/sup>, \u201cThis order came down telling people to change their foreign
\ncurrency to domestic money. It said there should be no confusion over foreign currency
\npolicy.\u201d
\nperiod of one month in place, and therefore people should go to currency
\nexchange locations and get it changed,\u201d the source went on. \u201cThey intimidated people by saying they know all the ways people keep their hard currency
\nownership hidden and threatening serious punishment for anyone who defies
\nstate policy. There has been more fear around since the execution of the
\naunt\u2019s husband [Jang Song Taek], and some people with
\ndollars do seem to be changing them.\u201d
\ntemporary exchange locations they’ve set up, the majority of people say they will go to private
\ncurrency traders and change their money there,\u201d the source went on. \u201cThe volume of dollars circulating has gone up because of this sudden measure, and
\nso the exchange rate has taken a hit. $1 was at 8400 won in mid December, but
\nit has dropped to 7800 won now.\u201d
\nof domestic North Korean currency due to the politicized nature of economic policy in the country; however, all remaining trust collapsed completely after a lightning currency reform implemented in November 2009. This helped exacerbate an existing trend toward possession of foreign
\ncurrency. <\/span><\/p>\n
\nincreasing the value of local currency, including coercive measures such as compulsory
\nexchange commands. However, they have failed to arrest the trend toward hard
\ncurrency ownership and declining North Korean Won values.<\/span><\/p>\n
\nnumber of things to try and secure hard currency,\u201d the source recalled. \u201cFor
\ninstance, in 2012 they said they’d buy foreign currency at a higher rate than
\nin the market. But these plans all failed. When this tension dissipates confusion could
\ncome, as exchange rates take a jump off the back of people moving to try and
\nget hold of foreign currency again.\u201d
\nsimply cannot continue for long given that foreign currency is in use in places like the increasingly popular burger joint, the big store on Gwangbok St. and other nice
\nrestaurants,\u201d the source said. \u201cMoreover, the harsher the controls or
\ncrackdowns get, the greater the chance of a backlash. So, this policy will
\nprobably fizzle out in no time.\u201d