SEOUL, Oct. 31 (Yonhap) -- Stricken with ever-increasing inflation, North Korea may soon move to ban the use of foreign currencies, a South Korean expert said Wednesday.

   "A rumor of a foreign currency ban is being circulated" among sources well versed in North Korean matters, Cho Bong-hyun, an analyst at the Seoul-based IBK Economic Research Institute, said in a seminar in Seoul.

   According to recent reports, prices of rice, the staple food for North Koreans, shot to the highest ever level over the past six months while the value of the North Korean won against the U.S. dollar continued to dive amid uncertainties pertaining to the recent leadership change in the North.

   "The North is now pushing ahead with a 10-year economic development plan adopted in early 2011," Cho said, adding that as part of its development plan the country may adopt the strategy of selecting and developing certain areas rather than launching an all-out development scheme affecting the entire country.

   pbr@yna.co.kr
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