North Korean Won (KPW)

The North Korean Won (KPW) is the official currency of North Korea, also known as the Democratic People’s Republic of Korea (DPRK). It has been the country’s currency since 1947 when it replaced the Korean yen. The currency is issued by the Central Bank of the Democratic People’s Republic of Korea.

Here are some key details about the North Korean Won:

1. Denominations: The North Korean Won is available in banknotes and coins. Banknotes are issued in denominations of 5, 10, 50, 100, 200, 500, 1000, 2000, and 5000 won. Coins are available in denominations of 1, 5, 10, 50 chon, and 1, 5 won.

2. Exchange Rate: The North Korean Won is not freely convertible and is not traded on international currency markets. Its exchange rate is highly controlled by the North Korean government, and the official rate is artificially fixed. The actual exchange rate can vary significantly in unofficial markets.

3. Usage: The North Korean Won is used for all domestic transactions within North Korea. It is not accepted as a form of payment outside the country, and foreign currencies, such as the US dollar or Chinese yuan, are commonly used in international trade.

4. Economic Isolation: North Korea’s economy is highly isolated from the global market, and its currency reflects this isolation. Limited foreign trade and economic sanctions imposed by various countries have contributed to the uniqueness of the North Korean Won.

5. Counterfeiting Concerns: The North Korean government has taken measures to protect its currency from counterfeiting. The banknotes have multiple security features, such as watermarks, holograms, and embossed printing, to prevent counterfeiting attempts.

6. Black Market: Due to the controlled exchange rate and limited convertibility, a significant black market for foreign currencies, including the US dollar, has emerged in North Korea. This black market provides an unofficial means for North Koreans to access foreign currencies and engage in international trade.

7. Hyperinflation Concerns: North Korea has faced economic challenges, including periods of hyperinflation. In the past, the government has revalued the currency, such as the 2009 currency reform when 1000 old won were exchanged for 1 new won. These measures were aimed at combating inflation and stabilizing the economy.

It is important to note that due to the limited access to information from North Korea and the secretive nature of its government, obtaining accurate and up-to-date information about the North Korean Won can be challenging.