North Korea’s economic woes and failed 2009 currency reform have reportedly exacerbated North Koreans’ dependence on the U.S. dollar and weakened the government’s control system over the public.

Foreign affairs and security officials at the South Korean presidential office said that North Korean stores are demanding payment in foreign currency, especially the U.S. dollar, when selling food and daily staples as well as high-priced electronic products. They said that there are even people who specialize in exchanging foreign currency in small amounts.

In addition, sources say that certificates that control the North Koreans’ travel, local administrative units to keep an eye on the public, and a system to instill the nation’s ideology in the people are not operating normally.

North Korean authorities are attempting to tighten control over the public by pursuing a change of the resident identification card system and stepping up public surveillance by increasing the frequency of local community meetings and beefing up security personnel.