Counterfeit Russian rubles flood Rason market as North Korea-Russia trade expands

Counterfeit Russian rubles have been circulating in Rason, North Korea’s special economic zone on the China-Russia border, prompting authorities to dispatch a special inspection team to trace their origin.

A Daily NK source inside North Korea reported on Friday that the State Information Bureau, the country’s main counterintelligence and security organ formerly known as the Ministry of State Security, detected the circulation of forged rubles in Rason’s jangmadang, the semi-official market network found across the country, and deployed an inspection team to the city. The team has been combing the area since May 12, focusing its investigation on how the counterfeit notes entered circulation.

The probe comes as the use of Russian rubles in Rason has grown significantly alongside the broader expansion of North Korea-Russia trade. The forged notes were discovered primarily among market traders who deal with Russian itinerant merchants.

“The problem came to light when counterfeit rubles were found among notes that market traders had received from Russian merchants,” the source said. “The fakes were so skillfully made that traders had no way of telling them apart from genuine notes.”

Probe widens to money changers and trade workers

Investigators have broadened their scope beyond the initial traders, now questioning currency exchangers and workers in trade-related enterprises as they work to identify the source and distribution network of the counterfeit notes.

The widening investigation has put Rason traders on edge, with concern growing that even those with no direct involvement in the forgery case could find themselves called in for questioning. Local reports suggest the inspection is expected to continue until mid-June.

“There are rumors that the investigation will go on until mid-June,” the source said. “Word that the crackdown will expand to cover foreign currency transaction sites, including the jangmadang, has put traders in a very nervous mood.”

Some traders expressed regret at having accepted rubles at all. “We used rubles because they had become normal currency in the market,” the source quoted one trader as saying. “If we had known this would happen, we would have stuck to dollars or yuan.”

Ruble’s value and credibility take a hit

The incident has had an immediate effect on confidence in the Russian ruble in Rason. Some traders have begun discounting ruble transactions, citing anxiety over the counterfeit notes, and a growing number are refusing to accept rubles altogether.

“Traders have been using dollars and yuan for so long that they have learned to spot fakes to some degree,” the source said. “But because experience with rubles is relatively limited, the risk of being deceived is seen as much higher, and more and more traders are refusing ruble transactions entirely.”

Rason serves as a critical hub for North Korea-China-Russia trilateral trade, functioning as the country’s primary gateway for commerce with Russia in particular. The spread of counterfeit currency there, combined with a sweeping inspection campaign, is expected to cause significant disruption to the city’s trade activity and the broader circulation of foreign currency in the region.

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