Why did UNDP decide to switch back to making payments in local currency?
After the U.S. raised concerns in December 2006 about direct payments in Euros, and to mitigate against possible misperceptions, UNDP informed the DPRK authorities that it would be switching back to making local payments in Korean Won. It is worth noting, however, that this would have had little impact on the volume of hard currency flowing into DPRK. It is also worth noting that with the exceptions already noted (e.g. petty cash, travel advances) all payments made in DPRK are made via check or bank transfer rather than in cash.
