North Korean authorities have intensified their crackdown on unauthorized foreign currency trading, with law enforcement increasingly using sting operations to catch offenders.<\/p>\n
According to a source in North Hamgyong province recently, prosecutors and police in Hoeryong have been working together since early March to clamp down on private money changing activities.<\/p>\n
In North Korea, foreign currency exchange is only permitted at government-designated locations such as banks, with private transactions prohibited by law. However, black market exchanges continue in secret because they offer better rates than official channels.<\/p>\n
As authorities tighten enforcement, they’ve increasingly relied on sting operations to eliminate illegal currency activities. Their strategy involves recruiting informants to contact money changers and then arresting them during the transaction.<\/p>\n
Despite money changers’ awareness of these tactics, they still struggle to identify undercover agents.<\/p>\n
On March 6, a woman in her mid-40s lost 20,000 Chinese yuan (around $2,800) when caught in a sting operation in Hoeryong’s Nammun neighborhood. After negotiating with what she thought was a legitimate customer over the phone, she brought the person to her home for the exchange. Authorities burst in just as the transaction occurred, confiscating both the trade money and her personal funds.<\/p>\n
The money changer protested loudly, saying, “It’s my money and my business, so what’s it to you? Am I some kind of thief?” During the confrontation, she was reportedly struck in the face.<\/p>\n
Though she was released after questioning due to having no prior offenses, the source noted, “Now she’s in their files, and it’s only a matter of time until she’s busted again. Money changers are pretty clever about avoiding the authorities, but there’s no guarantee she won’t slip up again.”<\/p>\n
The crackdown has caused significant frustration among North Koreans, particularly money changers.<\/p>\n
“Money changers are enraged about being treated like bandits when they’re just changing money for people. They complain that they have to continue in their current line of work, even though it’s illegal, since the government doesn’t provide any other way of making a living,” the source explained.<\/p>\n
The increased scrutiny has made money changers more selective about their customers, which “is angering ordinary people, who are the ultimate losers in these actions,” the source added.<\/p>\n