Japanese Media: "North Korea Bans Foreign Currency Use... Aims to Strengthen Market Control"

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] According to a report on the 29th by Asahi Shimbun citing sources, North Korea has recently begun banning the use of foreign currencies such as the US dollar and Chinese yuan. This is interpreted as an effort to reduce foreign currency circulation and strengthen market control ahead of announcing a new economic plan at the Workers' Party Congress in January next year.

Asahi reported on the same day, citing South Korean government sources and North Korea-China trade officials, that North Korean authorities recently issued such directives. There are about 500 markets in North Korea called 'Jangmadang,' where the US dollar or Chinese yuan is mainly used rather than the highly volatile North Korean won.

According to North Korea-China trade officials, the real exchange rate, which was around 8,000 won per US dollar, dropped to the 6,000 won range starting in October, and the yuan showed a similar trend. A North Korean official said, "The won's value will fall further," adding, "The ban on foreign currency use aims to increase the won's value and credibility."

Asahi stated, "North Korea is expected to aim to operate its economy domestically by improving production capacity for food and industrial goods through a five-year economic development plan to be announced at the Party Congress in January next year," adding, "At that time, it would be difficult to formulate plans if markets where foreign currency circulates outside government control are left unattended."

This content was produced with the assistance of AI translation services.