Actually, in Pyongyang, Sariwon, Pyongsong, and Hamheung, 1 dollar is traded at 30,800 won per dollar, and in Hoeryong, Hyesan, Manpo, and Sinuiju, border areas between North Korea and China, it is traded at 29,500 won per dollar.
This is a 275% increase, 3.75 times higher than the 8,000 won per dollar at the beginning of the year, and has been continuously breaking new records throughout the year.
The main cause of the surge in the exchange rate is the increased demand for imported goods and the resulting increase in demand for foreign currency following the opening of borders after COVID-19.
In particular, the recent rumors of currency exchange followed by the issuance of war preparation instructions to the entire party and military in October of last year are creating instability in the market, which appears to be further fueling the rise in the exchange rate.
In relation to this, a source said, “The authorities are taking strong measures against economic activities outside the control of the law enforcement agencies, using the Ministry of Public Safety and the prosecution, which is influencing the surge in the exchange rate,” and “This control is further highlighting the instability of the economy and creating confusion in the foreign exchange market.”
Arrests of big money changers and related individuals in each region
Meanwhile, North Korea has been known to be arresting big money changers and related individuals in each region. It appears that the arrests of money changers, who are at the center of foreign currency circulation, are intended to suppress individual foreign exchange transactions that are fueling the rise in the exchange rate.
In fact, in the middle of last month, the Yanggang Province Security Bureau of North Korea arrested about 30 big money changers and their associates. (Related article: Yanggang Province Security Bureau, arrests about 30 money changers and water owners… ‘executed’ next week)
However, some point out that North Korea’s measures do not help stabilize the exchange rate. The North Korean economy already has serious structural problems, and external sanctions and internal economic management failures are working together.
The source said, “The recent surge in the money rate has led to rising prices, which is having a direct impact on the people’s lives,” and “As such, it is uncertain whether controlling foreign exchange transactions will be an effective solution.”
***This article was translated by Google Translate, so the content may differ from the Korean article.
