The official currency of North Korea is the North Korean won, which is divided into 100 Chŏn. The ISO code of the won is 4217 and the international currency abbreviation is KPW. The currency symbol for the won is ₩.
History and development of the North Korean currency
The currency is used exclusively in North Korea. Until July 2002 there was even a special currency for foreign trade. However, this was first replaced by the US dollar from 2002 and later largely replaced by the euro and the Japanese yen. The current currency was used relatively suddenly in 2009.
This new won has no official exchange rate. Before 2009, the exchange rate was set by the government at one euro equivalent to 169 won. However, its value on the black market was much lower. During the currency reform in 2009, two zeros were struck off, so for 1000 old won, 10 new won.
The relatively sudden introduction unsettled the population and caused many North Koreans to exchange their savings in foreign currencies. This behavior triggered strong inflation and worsened the living conditions of many locals.
The importance of the won is becoming less important even in one’s own country, since it can only be used to pay in local shops that cannot guarantee supplies to the population. Imported products from China are now much more important and the importance of the Chinese yuan is increasing.
This is particularly due to the fact that Chinese traders are reluctant to accept the won due to the opacity of the government and the associated risk of exchanging valuable goods for paper that may be worthless.
Although the strict government tried to prevent the possession of foreign currency, a large part of private business is now carried out in foreign currency.
Exchange into the currency of North Korea
A holidaymaker in North Korea is only allowed to go to certain tourist shops that are paid for in euros, yen, yuan or US dollars. Local shops are not allowed to be entered by tourists and accordingly one does not come into contact with the local currency.
However, it is possible to exchange all common currencies for won in the North Korean hotels.
It should be noted that there are different versions of the won. One for the locals, one for socialist countries and one for foreigners. Anyone who exchanges money as a foreigner receives a receipt, which he must present with every payment.