Money in North Korea

My reader will perhaps be rather perplexed by why my first picture in a North Korean money review is of some Euro’s and my second is of a Chinese and an American note while the local currency of North Korea, the won, is relegated to picture three.

The answer to this conundrum is very simple. It is illegal for foreigners to possess or use the local currency in North Korea or take it out of the country.

The preferred currency in North Korea is the Euro followed by the Chinese Yuan and then the US Dollar. Yes, the North Korean dislike of the US (see my separate entry – “Americans in North Korea” ) does not extend to the US dollar!

There are a few matters related to money that you need to be aware of before going to North Korea:

• There are no ATM machines (cash dispensing machines) in North Korea
• You cannot have money transferred into North Korea
• You cannot change travellers cheques or any other form of normally negotiable instruments in North Korea
• Credit cards cannot be used anywhere in North Korea.

The above means that you must bring in cash (in one of the currencies mentioned) in sufficient quantity for the duration of your trip. Do bring notes of as small a denomination as you can find (Euro coins can be used) as change is hard to come by.

As you will be on an all expenses pre-paid trip the amount of money you need is limited to what you want to spend on additional drinks, extras such as pizza, fun park rides, dog meat, souvenirs, special event entrance fees e.g. mass games and tips for your guides. Outside, special event fees, tips and souvenirs and allowing a couple of beers a day you can easily get by on around 10-20 Euros a day. Your tour company will advise you on required tips and special event entry fees in advance of your travel.

While I indicated above that the possession (and export of) North Korean won is illegal you can normally acquire a small amount (for souvenir purposes) at the Yanggakdo Hotel, where the vast majority of tourists stay in Pyongyang. Ask your guide to assist you with this. Once in possession of your won do not attempt to spend it (you won’t get much opportunity in this regard anyway) as not only will you get into trouble but so too will the person you try to buy something from.

This restriction is clearly an attempt to stifle the limited black market which does exist. While the official exchange rate is around 130 Won to the US$ a rate of around 7000-8000 won to the US$ can be achieved on the black market. Perhaps this rate is indicative of the risks involved in dealing on the black market in North Korea. As I have already indicated, once in possession of your won, as a tourist, you won’t be able to spend it anyway so don’t go there!

The rules around spending hard currency outside the hotels, shops and restaurants you will be brought to seemed a little unclear. One of our group tried to procure an ice cream from a stall outside a flower-show we attended. While the vendor seemed interested in transacting business our guides brought the transaction to an abrupt end by indicating that it would be easier to buy an ice cream at our next stop – North Korea’s one and only ten pin bowling alley, as it was. The vendor immediately lost interest in the sale when the guides intervened and the tourist was guided away to their bus.

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This blog entry is one of a group (loop) of entries providing general and background information on The Rambling Wombat’s trip to, and travelling in, North Korea which I recommend you read in a particular order.  I suggest you continue with my next entry – Photography in North Korea.   If necessary, go to my North Korea introduction entry  – And now for something completely different – to start this loop at the beginning.

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