According to a recent survey of North Korean exchange rates by NK Times (17th to 27th), the price of the Chinese yuan in Pyongyang, Sariwon, Pyongsong, and Hamheung rose by about 6.67% from 2,250 won at the beginning of the month to 2,400 won (as of the 28th), and the dollar rose by about 6.38% from 16,100 won to 17,200 won.
In addition, the exchange rate in the northern border regions including Ryanggang Province and North Hamgyong Province was slightly higher than that in the inland regions.
As of the 27th, the Yuan was found to be worth 2,500 won and the US dollar was worth 18,000 won in Hyesan, Chongjin, and Hoeryong, up 11.11% and 11.80% respectively from the Yuan was worth 2,250 won and the US dollar was worth 16,100 won at the beginning of this month. This is the highest record among the exchange rate increases that have continued in North Korea for several years. In relation to this, a source from Yanggang Province in North Korea told NK Times on the 28th, “As the exchange rate has risen sharply this year, the number of people offering foreign currency has decreased to an unprecedented level,” and “Due to this phenomenon, even in Hyesan City, where smuggling is relatively common, the number of people trying to buy foreign currency has increased more than the number of people trying to sell it.”
He continued, “As the amount of foreign currency circulating in the market has recently decreased sharply, people are saying, ‘Those who have foreign currency are the winners,’ and are not offering foreign currency, so the exchange rate has naturally increased, and as a result, the price of imported goods has also increased,” and added, “Because of this, merchants selling industrial (communist) goods at the market are selling their stores and leaving.”
While the exchange rate in North Korea continues to rise at an unprecedented rate, food prices have remained relatively stable. According to a survey of food prices in North Korea from the 17th to the 27th, the price of rice in Pyongyang, Sariwon, Pyongsong, and Hamhung regions has increased from 6,800 won per kg at the beginning of this month to It was found that the price of corn rose slightly from 3,300 won to 3,500 won per kg, up about 3% and 6%, respectively.
The reason why food prices remain relatively stable despite the sharp rise in the exchange rate in North Korea is analyzed to be because the North Korean authorities are strictly controlling food prices through grain sales offices. In other words, since the COVID-19 incident, grain sales offices have been installed in provinces, cities, and counties across the country on a large scale, and this has suppressed the rise in food prices in the market, so it is interpreted that the effects are being seen.
In addition, it is said that a large amount of grain has been imported into North Korea from China and Russia recently, and this is also affecting the stability of food supply prices in North Korea.
In fact, a source in North Hamgyong Province said, “I understand that various grains such as rice, wheat flour, and corn have been coming into Rajin Port and Nampo Port from China and Russia this year.”
He added, “In particular, due to the policy of distributing food only through grain sales offices, individual “The food sales activities of merchants have decreased. As a result, since the prices of major foods are maintained under state control, there is no significant change in food prices even if the money supply rises,” he explained.
***This article was translated by Google and may differ from the Korean version.
