2 Chinese Banks Froze North Accounts

Japan’s Asahi Shimbun reported on Wednesday that major banks in the Chinese border city of Dandong between North Korea and China froze foreign exchange transactions through accounts opened by individuals of North Korean nationality and North Korean companies.

The newspaper reported that Dandong branches of China Bank and China Merchants Bank stopped remittance and withdrawal of foreign exchange after the North’s announcement on its nuclear weapons test. The banks reportedly froze the transactions on October 13, right after the North’s announcement.

This is causing disruptions in foreign exchange payments between China and North Korea, and more people are reportedly choosing to deal with cash directly, and not through banks. However, most banks allow remittance and withdrawal of Chinese Yuan.

Hundreds of people involved in trade with the North operate in the city of Dandong, and two third of trade between the two countries is concentrated in the region.

iam@donga.com