The currency of the DPRK. Brief history, description and course

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The official state currency of the DPRK is called the North Korean won, although it is similar in name to the South Korean won, it is a completely different monetary unit.

A Brief History

Few people know about the currency in North Korea, so it would not be superfluous to tell a brief history of the appearance of this monetary unit. The North Korean won was put into circulation in 1947, almost immediately after the formation of the state. Starting from the moment of its appearance and until 2008, it was customary in Russia to refer to this monetary unit as the North Korean won (spelled with a hyphen). Today, the currency of the DPRK, whose name has not changed, is written together, and not hyphenated.

Before the liberation of Korea from the Japanese protectorate, the Korean yen was used in the country, following the example of the mother country. After the division of the Korean Peninsula into two different states as a result of the Korean War of 1950-1953. in the newly minted Democratic People's Republic of Korea, the previously common currency for all of Korea was modified. By the way, in South Korea, by analogy with the old currency, its own South Korean won was created.

Banknotes

In 2009, the North Korean authorities denominated the national currency at the rate of 100 to 1. Paper banknotes are used in the countrydenominations of five, ten, fifty, one hundred, two hundred, five hundred, one and two thousand, and five thousand.

Due to the closed nature of the country and the rigid political dictatorship in North Korea, any foreign banknotes were banned from 2010-01-01. Therefore, there can be no foreign exchange transactions on the territory of the Democratic People's Republic of Korea.

The latest banknote put into circulation is the 5,000th banknote, which began to be used in the summer of 2014. The introduction of the new banknote is due to high inflation within the country, due to which the prices of most goods are rising sharply. The government is forced to constantly fight this detrimental phenomenon for the economy.

Coins

The currency of the DPRK is divided into 100 chon. Metal coins in North Korea are used on a par with paper bills. There are both North Korean won coins and jeon tokens.

Information about the monetary units of the DPRK is quite small, as the country is closed from foreigners. It is a great success for any bonist or numismatist if at least one of the copies of paper money or metal coins falls into his hands.

Currency exchange

In accordance with North Korean law, any use of foreign money in the territory of the DPRK is strictly prohibited, so you should not carry foreign money with you. Currency exchange is possible only at the Trade Bank branches and some large hotels.

BChinese border cities can also easily exchange money, but it is very risky and illegal.

To have foreign money with you while within the country is extremely dangerous, because if you are found to have it, then all the money will be confiscated, and at best you will simply be expelled from the state. However, the measures can be much harsher, so do not play with fire. Otherwise, you risk not only being expelled from the country without the right to visit it ever again, but even being arrested and ending up in a Korean prison.

The currency of the DPRK. Well. Conclusion

Today, you can exchange rubles for North Korean won only in the North itself. Korea, and only in the Trade Bank and some hotels. In general, this is very problematic.

What is the average exchange rate of the DPRK against the ruble in 2017? If you want to exchange Russian currency for won, then for one ruble you will receive approximately 15 North Korean won. However, this figure is very inaccurate, since the country has huge commissions for foreign currency exchange, in reality, for a certain amount of money, you can get much less than expected.

In general, the DPRK is the most inhospitable country for tourism, where they not only treat visitors with suspicion, but also create conditions so that no one dares to come to the country. Tourists are simply not allowed here, only officials of some countries and representatives of some large companies that do business in the state can obtain permission to enter the DPRK. But evenfor people who came on business to the DPRK, conditions are extremely unfavorable: constant surveillance by government agencies, neglect and difficulties with exchanging foreign money.

The currency of the DPRK is very rare outside of Korea itself, moreover, its value in the world currency market is extremely small. Due to the critical situation in the DPRK economy, the currency is constantly depreciating, and strong inflation only worsens its position. The country's government is forced to constantly fight against devaluation and inflation, but in conditions of complete autarky this is practically impossible. If the North Korean economy does not open at least partially to the world market, then eventually a default in the country is inevitable.