China cuts off primary North Korean bank

Bank of China (601988.SH, 3988.HKG) has cut ties with North Korea’s foreign exchange bank in what was a bold step from China to distance itself from the Kim Jong Eun regime, The Wall Street Journal reported. The move came as Beijing faces increasing pressure from Washington to distance itself from the rouge state. North Korea’s Foreign Trade Bank, which assumes many of the functions of a central bank, has been accused by the US of providing much needed hard currency to facilitate the development of nuclear weapons. Jacob Lew, the US treasury secretary, raised the issue of North Korea’s Foreign Trade Bank during his meetings with Chinese officials in Beijing in April.