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N. Korea May Face Currency Crisis Soon

N. Korea May Face Currency Crisis SoonN. Korea May Face Currency Crisis Soon

North Korea could reportedly face a currency crisis as early as this year due to the biting international sanctions on the country, KBS World Radio reported. The Financial Times of Britain on Thursday quoted economic experts as saying that North Korea’s major exports items are being blocked from being shipped overseas, including its major trade partner China, causing the country’s trade deficit to swell. They warned the country could enter a full-fledged currency crisis as early as this year. According to the experts, the North’s foreign reserves could quickly drain as they are used to make up for growing trade deficits. Choi Jang-ho, a South Korean research fellow at the Korea Institute for International Economic Policy, told FT that indicators suggest that the sanctions on the North are strong enough to create a currency crisis late this year or early next year.

 

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