{"id":49585,"date":"2021-09-29T12:47:16","date_gmt":"2021-09-29T03:47:16","guid":{"rendered":"https:\/\/www.dailynk.com\/english\/?p=49585"},"modified":"2021-09-29T12:53:39","modified_gmt":"2021-09-29T03:53:39","slug":"north-korea-issues-order-allowing-people-use-foreign-currency-state-run-food-shops","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/north-korea-issues-order-allowing-people-use-foreign-currency-state-run-food-shops\/","title":{"rendered":"North Korea issues order allowing people to use foreign currency at state-run food shops"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">North Korean authorities have recently allowed locals to purchase food using foreign currency, Daily NK has learned. This comes amid efforts by North Korean authorities to provide food to the population at lower-than-market prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The move suggests the authorities have adopted a strategy to absorb more foreign currency as tough international sanctions and the COVID-19 pandemic amplify the country\u2019s economic troubles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A source in North Hamgyong Province told Daily NK on Tuesday that the authorities recently issued an order allowing people to use foreign currency when they purchase food at state-run food shops. Accordingly, many people have purchased food in yuan at shops located throughout Hoeryong.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the source, the authorities stressed in the order that people could use foreign currency in accordance with \u201clocal characteristics.\u201d In short, North Korea\u2019s leadership wants to ensure that people can use the foreign currency in their possession &#8211; whether yuan or dollars &#8211; to buy needed items.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, when the authorities provided 10 days of food per family in mid-September to mark the foundation of the country on Sep. 9, they told residents of Hoeryong that \u201cChinese money can be used [to make the purchases]\u201d and that \u201cit is more advantageous [to use Chinese money] rather than domestic currency [KPW] to buy things.\u201d\u00a0\u00a0<\/span><\/p>\n<figure id=\"attachment_41820\" aria-describedby=\"caption-attachment-41820\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-41820\" src=\"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-300x200.jpg\" alt=\"price controls\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-300x200.jpg 300w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-768x512.jpg 768w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-1024x683.jpg 1024w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-696x464.jpg 696w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-1068x712.jpg 1068w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3-630x420.jpg 630w, https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2019\/08\/\u1110\u1169\u11bc\u110b\u1175\u11af\u1100\u1165\u1105\u1175-\u1109\u1175\u110c\u1161\u11bc-3.jpg 1200w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-41820\" class=\"wp-caption-text\">Tongil Market in Pyongyang \/ Image: Daily NK<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Generally speaking, residents of Pyongyang and other regions far from the Sino-North Korean border use US dollars when making purchases, while residents living in regions along the border &#8211; such as North Hamgyong, Yanggang and North Pyongan provinces &#8211; use Chinese yuan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the food provision was provided earlier this month, state-run food shops in Hoeryong sold a kilogram of rice for 4 yuan, 55 jiao. Using the RMB-KPW exchange rate as of Sep. 12 (RMB 1=KPW 700), this means North Koreans were able to buy food for the equivalent of KPW 3,190.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, purchasing the rice with yuan made it KPW 800 cheaper than using local currency (the rice cost KPW 4,000 per kilogram). The source said many locals consequently tried to purchase food using yuan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, North Koreans in the city believed they could purchase rice on the cheap, while the authorities believed that they could secure foreign currency, even though the state would incur some financial losses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">North Korean authorities have maintained their strict ban on the use of foreign currency in markets. All in all, the authorities appear to be using several techniques to ensure foreign exchange flows \u201cnaturally\u201d into the state\u2019s coffers, the source said.\u00a0<\/span><\/p>\n<p><em>Please direct any comments or questions about this article to dailynkenglish@uni-media.net.<\/em><\/p>\n<p><em><a href=\"https:\/\/www.dailynk.com\/%eb%b6%81%ed%95%9c-%ec%99%b8%ed%99%94-%ed%99%95%eb%b3%b4-%ec%82%ac%ed%99%9c-%ea%b5%ad%ea%b0%80%ec%8b%9c%ec%9e%a5%ed%8c%90%eb%a7%a4%ec%86%8c%ec%97%90%ec%84%9c-%eb%8b%ac%eb%9f%ac%e2%80%a7\/\">Read in Korean<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>North Korean authorities have recently allowed locals to purchase food using foreign currency, Daily NK has learned. This comes amid efforts by North Korean authorities to provide food to the population at lower-than-market prices. The move suggests the authorities have adopted a strategy to absorb more foreign currency as tough international sanctions and the COVID-19 [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":36491,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[67,645],"tags":[],"class_list":["post-49585","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>North Korea issues order allowing people to use foreign currency at state-run food shops - North Korea News \u2014 Daily NK | Latest DPRK Updates 2026<\/title>\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-korea-issues-order-allowing-people-use-foreign-currency-state-run-food-shops\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"North Korea issues order allowing people to use foreign currency at state-run food shops\" \/>\n<meta property=\"og:description\" content=\"North Korean authorities have recently allowed locals to purchase food using foreign currency, Daily NK has learned. 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