HONG KONG (Yonhap) -- North Korea will likely allow the circulation of the Chinese yuan currency in two special economic zones in a bid to attract more Chinese investors, diplomatic sources in Hong Kong said Friday.
The secretive communist regime is expected to let business entities use the yuan freely in the Rason Economic and Trade Zone and the Hwanggumpyong and Wihwa Islands Zone, ensuring to meet the demand for settlement in the Chinese currency, the sources, who are familiar with North Korean issues, said.
The North Korean authorities will also permit the establishment of both domestic and Chinese banking institutions in the zones.
China and North Korea recently ramped up their joint development of the North's special economic zones.
Under a bilateral agreement, a special economic zone in North Korea's northeastern city of Rason is envisioned to become a advanced manufacturing and logistics hubs, as well as a regional tourism center.
The two countries will also designate the Hwanggumpyong and Wihwa islands on the river border between them as hosts to the finance, economic and IT sectors.
Speculation has recently risen that the secretive regime will take legal steps to start economic reforms as new leader Kim Jong-un is seen to be seeking to consolidate his power partly through fixing the sickly economy.
Earlier, on Wednesday, a seminar aimed at attracting more investment in North th Korea was held in a Beijing hotel.