North Korean market prices have been declining for over a month, reversing last year’s continuous upward trend. The most dramatic change has been in the North Korean won’s exchange rate against the Chinese yuan.
Daily NK’s latest market survey reveals that the yuan traded at 2,300 won in Pyongyang on Feb. 2, marking a 23.3% drop from its January 18 rate of 3,000 won. Similar declines were observed in other regions, with Hyesan in Ryanggang province recording a 22.2% decrease to 2,450 won. This marks the first significant downturn in the yuan-won exchange rate since North Korea’s 2020 border closure during the COVID-19 pandemic.
The U.S. dollar has also weakened against the won, though less dramatically. In Pyongyang, the dollar fell 3.2% from 21,700 won on Jan. 18 to 21,000 won on Feb. 2. Sinuiju showed a similar pattern, with the dollar dropping 3.3% to 21,050 won.
The declining exchange rates coincide with reduced North Korea-China trade during China’s Lunar New Year holiday. This extended break, lasting over a week, temporarily halts cross-border trade as Chinese merchants close their businesses, leading to decreased demand for foreign currency in North Korea.
Food prices have also begun to fall. Rice prices dropped in both Pyongyang and Hyesan, falling 1.2% and 2.4% respectively since Jan. 18, to 8,000 and 8,300 won per kilogram. Corn, a staple for lower-income households, saw an even steeper decline, with prices in Pyongyang falling 9% to 3,000 won per kilogram.
These price drops appear to reflect recent government efforts to control market prices. Following discussions on “improving pricing activities” at last year’s party plenary meeting, local authorities issued orders through commercial departments warning that “arbitrarily raising prices” constitutes an “anti-socialist attitude.”
While the government isn’t imposing strict price ceilings or forcing merchants to lower prices, it has begun restricting sharp, arbitrary price increases through management offices in major markets. However, the upcoming spring lean season from February to May traditionally sees food stocks dwindle, which could push prices higher again.
With the lean season approaching, market stability will likely depend on whether North Korea can secure increased food imports from Russia and China.
February 18, 2025 at 12:04PM
by DailyNK(North Korean Media)