{"id":41659,"date":"2019-08-06T19:12:23","date_gmt":"2019-08-06T10:12:23","guid":{"rendered":"https:\/\/www.dailynk.com\/english\/?p=41659"},"modified":"2026-04-07T13:48:09","modified_gmt":"2026-04-07T04:48:09","slug":"north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\/","title":{"rendered":"North Koreans turn to local currency due to foreign currency shortages"},"content":{"rendered":"<figure id=\"attachment_41618\" aria-describedby=\"caption-attachment-41618\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-41618 size-full\" src=\"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min.jpg\" alt=\"Street market in Hyesan, Ryanggang Province\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min.jpg 1000w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min-300x200.jpg 300w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min-768x512.jpg 768w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min-696x464.jpg 696w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min-630x420.jpg 630w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41618\" class=\"wp-caption-text\">Street market in Hyesan, Ryanggang Province. Image: Daily NK<\/figcaption><\/figure>\n<p>Daily NK sources report that North Korea is experiencing a lack of foreign currency as the country continues to be impacted by international sanctions and a soon-to-be implemented ban on its laborers working abroad.<\/p>\n<p>Sources report that sanctions have reduced the flow of foreign currency into and out of the country, while the amount in circulation has further fallen because residents are hoarding it. While foreign currency is still being used to pay for major transactions, residents are increasingly using local currency to pay for daily items in the local markets.<\/p>\n<p>\u201cNorth Koreans are using local currency more often to buy things at the market. They\u2019d prefer Chinese yuan or US dollars, but there\u2019s just not enough of it in circulation to use,&#8221; a source in South Pyongan Province told Daily NK.<\/p>\n<p>\u201cThere are concerns that the situation could lead to an increase in counterfeit bills circulating in the country.&#8221;<\/p>\n<p>\u201cInternational sanctions have definitely led to a fall in circulating foreign currency,\u201d added a North Hamgyong Province-based merchant in his 40s. \u201cThe authorities implement measures to entice people to use foreign currency at particular shops and restaurants, or demand that the wealthy make donations to the regime\u2019s loyalty fund, but there\u2019s no avoiding the fact that the circulation of foreign currency has fallen compared to a couple of years ago.\u201d<\/p>\n<p>\u201cThere are rumors that the Arduous March [widespread famine of the mid-1990s] is returning, so people are trying to save up and not spend anymore,\u201d he said, adding that broader forces are at play.<\/p>\n<p>Despite the developments, the exchange rate remains relatively stable. Generally, a fall in foreign currency in the market would lead to an increase in the value of foreign bills and a rise in the exchange rate. But the exchange rate between the US dollar and North Korean won has fluctuated only slightly at 1 USD to 8,000 North Korean won, while the exchange rate between the Chinese yuan and North Korean won has remained at 1:1200.<\/p>\n<p>However, if there is an increase in the use of foreign currency in the markets while the overall circulation of foreign bills continues to fall, it could lead to a significant impact on exchange rates.<\/p>\n<p>According to Lim Soo Ho , a senior research fellow at the Institute for National Security Strategy (INSS), there has been so little exchange between the North Korean won and the US dollar that the effect has been negligible. However, he says, if dollars continue to be a rarity and their value continues to rise, this will affect their exchange rate.<\/p>\n<p>Foreign currency continues to be used in major transactions occurring in the country. \u201cSmall-scale transactions like those in the markets for a couple of kilos of rice or meat involve North Korean currency, but bigger transactions of 10,000 USD or more tend to involve US dollars or Chinese yuan,\u201d said the North Hamgyong-based source.<\/p>\n<p>Ten thousand USD equals around 8 million North Korean won. The largest bill in circulation in North Korea is the 5,000 won note, meaning that 16,000 bills would be needed to cover a transaction worth 10,000 USD.<\/p>\n<p>Sources also report that North Koreans still prefer foreign currency.<\/p>\n<p>\u201cPeople frequently use North Korean won to buy goods at the market, but that doesn\u2019t mean that they don\u2019t want to have foreign currency,\u201d a separate source in South Pyongan Province reported.<\/p>\n<p>\u201cThe increasing use of [debit] cards has led to a rise in usage of North Korean won in the market, but North Koreans don\u2019t really have much faith in the local currency. They\u2019d rather use foreign currency and farmers prefer it too.\u201d<\/p>\n<p>\u201cPeople generally use North Korean won to pay for things at the market, but they try to get foreign currency on purchases more than 10 USD,\u201d another merchant in North Hamgyong Province told Daily NK. The merchant added that shops give consumers discounts if they use USD.<\/p>\n<p>\u201cDuring the foreign currency reform of 2009, the authorities more or less stole the money people had saved up over a long time,\u201d the merchant continued. \u201cThe next year, the government said that individuals could no longer use foreign currency and allowed them to exchange all the foreign currency people had at the banks for local currency. Soon after, however, the value of foreign currency spiked and individuals began buying and selling foreign currency in secret.\u201d<\/p>\n<p>After this series of events, she said, people began to mistrust the authorities.<\/p>\n<p>North Koreans generally avoid putting their money into banks run by the authorities and instead store it in their homes, the merchant said.<\/p>\n<p>\u201cNobody puts their money in a bank because nobody trusts the state,\u201d she said. \u201cAfter the currency reform, many people avoided using North Korean won. They will continue to distrust local currency in the future.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Daily NK sources report that North Korea is experiencing a lack of foreign currency as the country continues to be impacted by international sanctions and a soon-to-be implemented ban on its laborers working abroad. Sources report that sanctions have reduced the flow of foreign currency into and out of the country, while the amount in [&hellip;]<\/p>\n","protected":false},"author":171,"featured_media":41618,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67],"tags":[],"class_list":["post-41659","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>North Koreans turn to local currency due to foreign currency shortages - North Korea News \u2014 Daily NK | Latest DPRK Updates 2026<\/title>\n<meta name=\"description\" content=\"Daily NK sources report that North Korea is experiencing a lack of foreign currency as the country continues to be impacted by international sanctions and a soon-to-be implemented ban on its laborers working abroad.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailynk.com\/english\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"North Koreans turn to local currency due to foreign currency shortages\" \/>\n<meta property=\"og:description\" content=\"Daily NK sources report that North Korea is experiencing a lack of foreign currency as the country continues to be impacted by international sanctions and a soon-to-be implemented ban on its laborers working abroad.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dailynk.com\/english\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\/\" \/>\n<meta property=\"og:site_name\" content=\"North Korea News \u2014 Daily NK | Latest DPRK Updates 2026\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-06T10:12:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-07T04:48:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/6-min.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ha Yuna\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ha Yuna\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/\"},\"author\":{\"name\":\"Ha Yuna\",\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/#\\\/schema\\\/person\\\/116bf99c9521ec70efc4b38d538f42ff\"},\"headline\":\"North Koreans turn to local currency due to foreign currency shortages\",\"datePublished\":\"2019-08-06T10:12:23+00:00\",\"dateModified\":\"2026-04-07T04:48:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/\"},\"wordCount\":820,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2019\\\/08\\\/6-min.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/\",\"url\":\"https:\\\/\\\/www.dailynk.com\\\/english\\\/north-koreans-turn-to-local-currency-due-to-foreign-currency-shortages\\\/\",\"name\":\"North Koreans turn to local currency due to foreign currency shortages - 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