North Korea is targeting foreign travelers to earn hard currency as it faces a shortage of dollars amid toughened international sanctions, sources familiar with the isolated country said Tuesday.

North Korea is luring foreigners visiting Pyongyang into spending more dollars by letting them go to department stores and shops that sell high-priced products, the sources said.

The move came as the North is believed to be suffering from a dollar shortage following toughened U.N. sanctions slapped on the country in early March.

The U.N. Security Council imposed the toughest sanctions to date to punish the North for its fourth nuclear test and long-range rocket launch earlier this year. The aim of the sanctions is to cut off sources of hard currency for the regime, which is suspected of using some of the funds to bankroll its nuclear and missile development programs.

"In the past, North Korea had enticed foreign travelers into visiting department stores and shops which accept dollars. But it seems that the extent of its efforts has intensified amid stronger sanctions," a source said.

It added that the North appears to focus on earning dollars to prepare for the ruling party's key congress slated for early May.

"Previously, the North drew up an itinerary for foreigners focusing on visits to scenic spots for its propaganda campaign. But this time, the North seems bent on promoting its products to earn dollars," another source said.

Meanwhile, the North conducted special rations on the occasion of last week's birthday of its late founding father Kim Il-sung, according to insiders.

North Koreans living in Pyongyang are believed to have received rations including food, alcohol and meat from authorities as Pyongyang celebrated the founder's 104th birthday, also known as "the Day of the Sun," on Friday, they added. (Yonhap)