Original article in Korean is at this link. Hat tip to the The Korean.

North Korean authorities are instituting a strict ban on the use of foreign currencies while calling it the last order of Kim Jong-il.

On the 2nd Daily NK, which reports on North Korean news, said that according to a report in the province of Hambgeyongbuk-do, “calling it a deathbed order, the authorities have warned that they will severely punish anyone caught using foreign currency such as dollars and yuan.”

The report continued, “the dying order, they say, is to punish the use of foreign currency more severely than the use of illegal drugs… Because the reasons for Kim Jong-il’s final order were not revealed, it appears it will be fully implemented.”

However, some are watching to see whether this “foreign currency ban deathbed order” will be executed. There is little possibility that the order could be strongly implemented in North Korean markets, where foreign currency use is widespread. Most merchants use foreign money, so if the measure is actually enforced it could plunge North Korean markets into chaos. The report said that “there is a strong possibility that, because it is called a deathbed order, legal authorities will compete to appear loyal.”

The general view is that currency reform is responsible for the collapse in trade in North Korean currency. In November of 2009 North Korea converted all 100 won bills into 1 won bills, but this led to severe inflation and citizen resistance.

Kim Jong-il, who was never subject to economic difficulty, normally left economic matters to bureaucrats because “Kim Il-sung told him never to be involved in economic matters.” Therefore, heads repeatedly rolled when results were bad or openness was discussed.

Park Nam-gil was purged from the Worker’s Party after the failure of the currency reform and replaced by Hong Seok-hyeong.