The soaring won-dollar exchange rate at marketplaces in North Korea appears to have paused, at least for the moment. But the won-yuan market exchange rate is still rising.
According to Daily NK’s regular survey of North Korean market prices, the won-dollar exchange rate at Pyongyang and Hyesan, in Ryanggang province, was down slightly on Nov. 24.
The survey found that a U.S. dollar was trading for 17,900 won at a marketplace in Pyongyang on Nov. 24. That was 1.1% lower than the exchange rate (18,100 won) during the previous survey, on Nov. 10.
In Hyesan, the declining rate was more noticeable than in Pyongyang. The won-dollar exchange rate at a Hyesan marketplace was 18,000 won on Nov. 24, which was 2.2% lower than two weeks before.
Nevertheless, the won-dollar exchange rate in Sinuiju, North Pyongan province, retained some upward momentum. The won-dollar exchange rate at a Sinuiju marketplace was 18,300 won on Nov. 24, rising 100 won from Nov. 10.
While the market won-dollar exchange rates have leveled off, the rate of the won-yuan exchange rate is still on the rise. One Chinese yuan was trading for 2,400 won at marketplaces in Sinuiju and Hyesan on Nov. 24, representing an increase of 4.3% and 0.8%, respectively, from two weeks before.
As North Korea’s trading volume expands and exchange rates grow more volatile, international prices seem to be having more of an impact on North Korea’s market rates than before.
North Korea’s large-scale money traders — who generally deal with more than $10,000 per transaction — play a leading role in setting North Korea’s market exchange rates. They set rates through a network of small-scale agents spread throughout each major city after taking into consideration international rates, the North Korean regime’s trade policy, and market demand for foreign currency.
According to multiple sources inside North Korea and China, one of the first data points these money-trading heavyweights check each morning is the market rate for the dollar in China. More specifically, they refer to the dollar-yuan standard rate published by the People’s Bank of China.
While fluctuations in market exchange rates in North Korea do not always reflect international exchange rates, the current market won-dollar exchange rate does look similar to international rates.
Just as the won-dollar rate has exhibited more stability and the won-yuan rate has slowly risen recently at North Korean marketplaces, the dollar’s strength has recently been blunted and the yuan has been rebounding against various currencies in international markets.
Dollar-yuan rate edging closer to international rate
It is also notable that the dollar-yuan exchange rate at North Korean markets is closer to the international exchange rate now than before North Korea’s market rates began to soar.
The won-dollar and won-yuan exchange rates in Pyongyang were 8,300 won and 1,250 won, respectively, on Jan. 7, indicating that the yuan was trading 6.64 to the dollar.
But the current dollar-yuan exchange rate in Pyongyang (as of Nov. 24) is 7.7826, which is similar to the base rate of 7.2462 announced by the People’s Bank of China on Nov. 25.
As exchange rates continue to rise in North Korean markets, the price of imported goods has exhibited a marked increase. Gasoline and diesel, two major imported goods in North Korea, were trading for 22,100 won and 19,500 per kilogram, respectively, at a marketplace in Pyongyang on Nov. 24. That represented an increase of 10.5% from the previous survey on Nov. 10.
This survey found that the price of gasoline in Sinuiju and Hyesan had shot up by a similar amount to Pyongyang.
The prices of imported cooking oil and sugar have also risen considerably. A kilogram of cooking oil was trading for 21,800 won at a marketplace in Pyongyang on Nov. 24, up 16% from two weeks previous. A kilogram of sugar was trading for 18,200 won on the same day — an 19.7% increase from two weeks before and the highest price recorded in the survey.
But despite the rising exchange rates, the price of wheat at North Korean markets appeared to be holding steady.
Daily NK works with a network of sources in North Korea, China, and elsewhere. For security reasons, their identities remain anonymous.
Please send any comments or questions about this article to dailynkenglish@uni-media.net.
December 09, 2024 at 12:37PM
by DailyNK(North Korean Media)