North Korean authorities have arrested a prominent money changer in Hyesan, Ryanggang province, as part of a wider crackdown on illegal currency exchange amid rising exchange rates, Daily NK has learned.<\/p>\n
According to a source in Ryanggang province recently, police arrested a female money changer in her 50s who handled large volumes of foreign currency transactions in Hyesan at the end of last month.<\/p>\n
During a raid on her home, police seized foreign currency and transaction records containing names and phone numbers of her clients. The woman’s clientele primarily consisted of small-scale money changers operating in marketplaces, traders, and remittance brokers. The source said police are now systematically arresting individuals listed in these records.<\/p>\n
“Five people have been arrested since her detention. Police have searched their homes and confiscated suspicious items. This has made all money changers, not just her clients, extremely cautious,” the source said.<\/p>\n
Major money changers in Hyesan have suspended operations following the arrest, causing difficulties for traders who need to make payments for Chinese imports.<\/p>\n
“The arrest came after exchange rates suddenly increased in mid-November. Police typically target active money changers during such spikes, and this time they arrested one of the city’s most influential operators,” the source explained.<\/p>\n
Daily NK’s market surveys show the won-dollar exchange rate in Hyesan increased by approximately 2,000 won between October and mid-November, rising from around 16,000 to 18,000 won. As of Dec. 7, the rate has exceeded 20,000 won.<\/p>\n
Rumors of a potential currency redenomination have circulated in Hyesan since spring and persist today. The unstable economic situation has sparked various concerns, with some residents speculating about crop failures next year.<\/p>\n
“Rising exchange rates are driving up prices, making daily life more difficult. The regime is blaming and arresting money changers, but people are angry because these actions are only worsening the situation,” the source said.<\/p>\n
The source argued that the crackdown itself is contributing to rising exchange rates, adding, “Exchange rates and prices keep climbing, but the government’s only response has been to arrest a few money changers. People fear that if this continues, crime will increase and poverty will become more visible on the streets.”<\/p>\n