Tuesday, 9 April 2013
North Korean economy is a Dollarized economy?
The DPRK's official currency is the North Korean won, but Jang said everything in North Korea was pegged on the U.S. dollar, including the black market economy. The won was effectively "like toilet paper" he said and because all business was done using dollars the currency was used by people to barter even at the lowest levels of North Korean society.
Pyongyang had tried to revalue the currency but because everyone used U.S. dollars to trade, the dollar consistently went up and the won continued to fall in value, he said.
Hoare said euros were increasingly being used in some areas because North Koreans were worried the U.S. would somehow cut off dollars. Foreign currency flowed into North Korea in a number of ways including cross border trade with China and visiting foreigners, he said. All embassies also had to operate in foreign currency.
Posted by Nicolaas Smith at 11:29