The role of China for North Korea and especially its economy has increased dramatically since the downfall of the Soviet Union. The overwhelming majority of the DPRK’s foreign trade is done with China and, with the shutdown of the Kaesong Industrial Complex, this ratio is likely to further increase.
One of the means for China to increase its influence is its currency: Chinese yuan. In 2004, the central banks of China and North Korea signed an agreement legalizing the use of yuan in trade between two countries. Since then, the role of the yuan in North Korea has increased dramatically.
The role of China for North Korea and especially its economy has increased dramatically since the downfall of the Soviet Union. The overwhelming majority of the DPRK’s foreign trade is done with China and, with the shutdown of the Kaesong Industrial Complex, this ratio is likely to further increase.
One of the means for China to increase its influence is its currency: Chinese yuan. In 2004, the central banks of China and North Korea signed an agreement legalizing the use of yuan in trade between two countries. Since then, the role of the yuan in North Korea has increased dramatically.
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