{"id":4380,"date":"2019-12-12T10:46:46","date_gmt":"2019-12-12T01:46:46","guid":{"rendered":"http:\/\/www.01.asiapress.org\/rimjin-gang\/?p=4380"},"modified":"2022-01-24T15:33:21","modified_gmt":"2022-01-24T06:33:21","slug":"foreign-cash","status":"publish","type":"post","link":"https:\/\/www.02.asiapress.org\/rimjin-gang\/2019\/12\/society-economy\/foreign-cash\/","title":{"rendered":"\uff1cInside N. Korea\uff1e Capital Punishment: Foreign Cash Crackdown Feared After Kim Criticizes Citizens\u2019 Neglect for National Currency"},"content":{"rendered":"
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A woman sells various items, such as soap and detergent, in a market in northern Hyesan. Almost all transactions are said to be conducted in RMB. Photograph taken in August, 2013 by ASIAPRESS<\/p><\/div>\n

\u25c6 Public criticized by Kim for neglecting North Korean bills<\/h2>\n

\u201cOur nation\u2019s banknotes are being totally neglected...\u201d<\/p>\n

With Kim Jong-un\u2019s words of criticism, a crackdown seems to have been initiated nationwide. The following was reported on November 21 by a reporting partner living in North Hamkyung Province:<\/p>\n

\u201cKim Jong-un\u2019s words of criticism were passed down through the inminban (local political units) in early November. The complaint was that, while foreign money is being treated with great importance by the people and at markets, North Korean money is being neglected. We were told to end this practice.\u201d<\/p>\n

According to the reporting partner, a member of the Workers\u2019 Party, Pyongyang\u2019s central bank had reported to Kim Jong-un that a large number of deposited banknotes were damaged and in tatters, prompting Kim Jong-un to criticize the public.<\/p>\n

Immediately after, Kim Jong-un\u2019s orders were executed. From now on, when exchanging damaged bills at banks, citizens must explain in detail why the banknotes were damaged and, depending on the extent of the damage, may not be able to exchange the bills.<\/p>\n

There is, however, a reason why North Korean people treat their country\u2019s banknotes with such little care. The reporting partner explained as follows:<\/p>\n

\u201cThese days, almost everyone is dependent on the RMB or US dollar and purposely avoids using the risky North Korean bills. We can only use the North Korean bills when paying for items related to the national plan, with no other opportunity to use the money. Now, even the open-air tofu vendors are charging in RMB for a single block of tofu.\u201d
\nNext page :Impossible to survive off the North Korean won...<\/strong>
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A street vendor proudly trading in RMB. She holds in her hand a 1 yuan note. Photograph taken in Ryanggang Province in October, 2013 (ASIAPRESS)<\/p><\/div>\n

\u25c6 Impossible to survive off the North Korean won<\/h2>\n

In North Korea, the state budget is ostensibly set in North Korean won, with salaries paid to government and Workers\u2019 Party officials in the nation\u2019s own currency. For example. a middle school teacher earns about 2,000 won a month and high-ranking political officer receives about 8,500 won a month.<\/p>\n

As of mid-November, however, the exchange rate value of 1,000 North Korean won is only about 130 South Korean won. Surviving off a national salary, therefore, is impossible. The current market price for a kilogram of white rice and corn, respectively, is 5,000 won and 1,700 won. Middle school teachers could only afford 500 grams of white rice a month on their salary.<\/p>\n

As a result, the majority of North Koreans take side jobs as a way of earning foreign currency. With RMB and US dollars acting as the lifeblood of the North Korean economy, it is no wonder that North Korean banknotes are being treated poorly.<\/p>\n

The sudden order for North Korean citizens to \u201cbetter treat North Korean bills\u201d seems to be a precursor to a wider crackdown on foreign currency.<\/p>\n

In the words of the reporting partner, \u201cMarket traders are nervous, saying that there will be a crackdown soon. As soon as Kim Jong-un\u2019s \u2018criticism\u2019 came down, they filled their bags with North Korean banknotes to have just in case of inspection. Actual transactions, however, are secretly conducted in foreign currency.\u201d<\/p>\n

North Korea\u2019s economy continues to deteriorate in the face of UN Security Council sanctions. In particular, the drop in national exports has left the state with a severe shortage of foreign currency. Kim Jong-un\u2019s words of criticism may represent the beginning of a crackdown on foreign currency and a ploy by the regime for collecting foreign currency held by citizens. (Kang Ji-won)<\/p>\n

\u203bASIAPRESS contacts reporting partners in North Korea through smuggled Chinese mobile phones.<\/p>\n

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