Amid persistent rumors of currency redenomination, North Koreans are increasingly shunning the domestic won in favor of foreign currencies. This growing distrust is accelerating the economy's dependence on foreign money.

"Rumors about currency redenomination that began last year continue to spread, and more North Koreans are refusing to hold the domestic currency," a source in South Hamgyong province told Daily NK on Thursday.

At marketplaces and shops, customers are noticeably avoiding the won. U.S. dollars and Chinese yuan now dominate transactions, with won-based exchanges becoming increasingly rare. While merchants have long preferred foreign currency due to mistrust in the won, this preference has now reached unprecedented levels.

A veteran vendor in her 50s, who has operated in Hamhung for over two decades, described the situation as unprecedented. "Dollars were always common here, but now the yuan is everywhere too. Vendors resist accepting won, and customers won't even take Korean coins as change from foreign currency transactions. Some vendors struggle to conduct business because they can't make change in foreign coins," the source explained.

This aversion to the won stems largely from the traumatic 2009 currency reform, when the government limited how much old currency families could exchange for new bills, causing widespread financial devastation. Though more than a decade has passed, this memory continues to haunt North Koreans, fueling current fears of another redenomination.

Common sentiments in Hamhung reflect this anxiety: "We're not foolish enough to hold onto domestic currency" and "There's no telling when people will be ruined by another currency redenomination."

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N. Koreans abandon won as currency redenomination fears spread(https://www.dailynk.com/english/north-koreans-abandon-won-currency-redenomination-fears-spread/)