As exchange rates and prices continue to rise, rumors of currency reform are spreading among North Korean residents.

Scenery of a rural village in Suncheon, South Pyongan Province, North Korea, taken around October 2018. A merchant is selling goods on the street. /Photo=Daily NK

It is said that as exchange rates and prices have recently soared in North Korea, rumors are spreading that “currency reform may occur.” However, the North Korean authorities are known to have strongly controlled comments related to currency reform, dismissing them as rumors.

According to a source from Daily NK in South Pyongan Province on the 28th, the ‘currency exchange (reform) theory’ began to be raised among some residents from the beginning of this month, and recently rumors related to this have spread widely throughout South Pyongan Province.

It is said that residents of South Pyongan Province currently see a high possibility of currency reform becoming a reality based on the fact that similar trends are occurring before the currency reform in 2009.

In particular, residents are whispering that the North Korean authorities’ recent expansion of cash supply instead of in-kind is similar to that time.

In fact, it was reported that early this month, at a farm in Sukcheon-gun, after the fall harvest was over, distribution money (distribution money) was distributed in cash rather than in kind such as rice or corn while paying farm workers for their work for the year.

It is not a small amount compared to the amount paid in kind in previous years, but it is said that the reaction of farm workers who received cash was not very good because the price of rice in the market has risen so much and in-kind products are rare.

The source said, “Even before the currency exchange in 2009, farm workers received distribution money in cash, not grain.” He added, “At the time, farm workers responded enthusiastically to receiving large sums of cash they had never touched in their lives as distribution money, but it was not long before the currency exchange occurred. “As a result, the value of national money plummeted, and the large sums of cash received by farm workers turned into pieces of paper,” he said.

At the same time, he said, “At that time, as residents had a lot of cash, prices rose rapidly and the value of money fell, but it is still the same situation now,” adding, “The current phenomenon is reminiscent of that time, and residents are highly anxious.”

However, as rumors of currency reform spread among residents, North Korean authorities dismissed it as rumors and warned that those who made or spread related comments would be severely punished.

It is said that security and security agencies are also working hard to monitor the private conversations of residents by mobilizing informants, saying, “Spreading rumors is a selfish act that causes social chaos.”

Meanwhile, there was a recent case where someone was punished in a labor training camp for mentioning the possibility of currency reform.

A farm worker in Sukcheon-gun who received distribution in cash said, “In the past, distribution money was distributed, so prices continued to rise and the value of money fell, but then currency exchange began and all the money became trash. He said, “It’s still the same situation as then,” but he was called into question and was punished for three months in a labor training camp.

Also, on the 22nd, in a market in Pyongseong City, merchants were reportedly stopped by a market manager while talking about currency reform and were warned to “watch your mouth.”

The source said, “The merchant was told by the market manager, ‘When is the right time to say such pathetic things? Have you ever heard the rumor that someone was executed by firing squad for saying something wrong about exchanging currency? “I heard a threatening instruction saying, ‘If you don’t want to be kicked out of the market, don’t say anything like that again.’”

Despite the situation, it is known that rumors predicting the possibility of currency reform are continuing to spread in South Pyongan Province.

A source said, “Business people keep saying that they have no money left even after selling goods due to the ever-rising exchange rate and prices, so they are really exchanging currencies again. Even if they can’t say it out loud, everyone is saying that they will soon exchange currencies.” “I think they think they will do it,” he said.

Source: www.dailynk.com