The North Korean won-dollar market exchange rate, which was soaring rapidly, appears to be slowing down for a while. However, the North Korean won/yuan market exchange rate still showed an upward trend.
According to the North Korean market price survey conducted regularly by Daily NK, the North Korean won-dollar exchange rate fell somewhat in Pyongyang and Hyesan, Ryanggang Province on the 24th, showing a weak trend.
On the 24th, it was discovered that one dollar was traded at 17,900 North Korean won at a market in Pyongyang, which was 1.1% lower than the exchange rate (18,100 won) on the 10th, the previous survey.
In the case of Hyesan, the dollar exchange rate decline was greater than in Pyongyang. On the 24th, the dollar exchange rate at a market in Hyesan was found to be 18,000 won, down 2.2% from two weeks ago.
However, in Sinuiju, North Pyongan Province, the dollar exchange rate is still strong. On the 24th, the dollar exchange rate in one market in Sinuiju was 18,300 won, up 100 won from the previous 10th.
Unlike the market’s slowdown in the rise in the won-dollar exchange rate, the won-yuan exchange rate showed an upward trend again. On the 24th, in a market in Sinuiju and Hyesan, 1 yuan was traded at 2,400 North Korean won, up 4.3% and 0.8%, respectively, from two weeks ago.
Meanwhile, as North Korea’s trade volume expands and exchange rate fluctuations increase, the North Korean market exchange rate is understood to be more influenced by international prices than before.
Big money changers, whose foreign exchange transactions amount to more than $10,000 per transaction, play a leading role in forming the exchange rate in the North Korean market. They compile international prices, North Korean authorities’ trade guidelines, and foreign currency demand in the market, and then disperse to each major city. It is said that the market price is set based on the existing network of money changers.
According to multiple sources inside North Korea and Chinese sources on North Korea, one of the pieces of information that big money dondecos check every morning is the dollar price in China. In particular, it is known that the standard exchange rate information for dollar-yuan transactions announced by the People’s Bank of China is also referred to.
Although foreign currency fluctuations in the North Korean market do not always follow the same pattern as the international price, in fact, the current dollar-yuan exchange rate in the North Korean market shows a similar level to the international price. In fact, just as the dollar’s recent upward trend in the North Korean market has stabilized somewhat and the yuan exchange rate has risen slightly, the dollar’s strength in international exchange rates has also recently eased and the yuan exchange rate is rebounding.
Another noteworthy point is that compared to before the North Korean foreign currency exchange rate skyrocketed, the current dollar-yuan exchange rate in the North Korean market is similar to the international exchange rate.
On January 7, early this year, the North Korean won-dollar exchange rate in Pyongyang was 8,300 won, the North Korean won-yuan exchange rate was 1,250 won, and the dollar-to-yuan exchange rate was 6.64. However, as of the 24th, the dollar-yuan exchange rate in the Pyongyang area was 7.7826, which is similar to the yuan-to-dollar standard of 7.2462 announced by the People’s Bank of China on the 25th.
Meanwhile, as the exchange rate continues to rise in the North Korean market, import prices are rising noticeably.
Gasoline and diesel, which are representative imported goods, were traded at 22,100 won and 19,500 won per kg, respectively, in a market in Pyongyang on the 24th, a 10.5% increase from the price surveyed on the 10th of this month, two weeks ago. Likewise, it was found that gasoline prices in Sinuiju and Hyesan rose by a similar amount as in Pyongyang.
The prices of cooking oil and sugar, which are imported food ingredients, have also risen significantly. As of the 24th, 1kg of cooking oil was traded at 21,800 won in a market in Pyongyang, up 16% from two weeks ago, and 1kg of sugar was traded at 18,200 won, also a 19.7% increase from two weeks ago, the highest price ever. recorded.
However, it was found that the price of flour in the North Korean market remains stable despite the rise in the exchange rate.
Source: www.dailynk.com
