The foreign currency exchange rate in the North Korean market has once again reached a new record. After the North Korean won-dollar exchange rate hit a record high in early September, it seemed to have stabilized by remaining flat for about two months, but it has surged by more than 10% again, causing confusion in the market.
According to a North Korean market price survey conducted regularly by Daily NK, one dollar was traded at 18,100 won in a market in Pyongyang on the 10th, a 13.1% increase from the time of the survey on the 27th of last month, two weeks ago (16,000 won). appeared.
This is a 2.18-fold increase compared to the dollar exchange rate in Pyongyang on January 7th, which was 8,300 won. This is the first time since the currency reform in 2009 that the North Korean won-dollar market exchange rate has more than doubled in one year.
In other regions, the rate of increase in the dollar exchange rate was similar to that in Pyongyang, and the region where the exchange rate soared most steeply was Hyesan, Yanggang Province.
On the 10th, the North Korean won-dollar exchange rate at a market in Hyesan was found to be 18,400 won, up 14.3% from the price of 16,100 won on the 27th of last month. This is the highest price since the currency reform in 2009.
As a result of finding out through Dong-A Ilbo’s North Korean exchange rate database, the difference between the high and low points of the North Korean won-dollar exchange rate in 2024 is 7,900 won, and it was confirmed that the difference between the highest and lowest exchange rate points every year since 2014 has never been larger than this year. It happens.
The difference between the North Korean won and dollar exchange rate between early 2022, when the exchange rate fell significantly as trade expectations fell due to the coronavirus blockade, and late 2022, when trade volume began to recover, was 3,750 won, but the difference was much smaller than this year.
Meanwhile, the North Korean won/yuan market exchange rate was found to have surged by more than 10% in two weeks, similar to the dollar.
The place where the North Korean won-yuan exchange rate is the highest is Hyesan. On the 10th, 1 yuan was traded at 2,380 North Korean won at a market in Hyesan. This is a 14.4% increase from the 27th of last month.
The rate of increase in the won and yuan was found to be the highest in Sinuiju, North Pyongan Province, among the regions surveyed. The North Korean won-yuan exchange rate traded at a market in Sinuiju on the 10th was 2,300 won, a 15% increase from the survey price of 2,000 won on the 27th of last month.
This is the first time that the yuan exchange rate in North Korea has risen to the 2,300 won range since 2009, when we began investigating prices in the North Korean market.
The reason why the exchange rate soared by more than 10% in the North Korean market is analyzed to be the result of a combination of external factors, such as the strengthening of the dollar in the international financial market, and internal factors, such as the increasing demand for foreign currency as residents expand their use of foreign currency. .
Meanwhile, as the dollar-yuan exchange rate rises rapidly in North Korean markets, there are frequent cases of market merchants refusing to sell goods in local currency.
A source from North Pyongan Province said, “In one morning, the dollar (dollar) goes up by over 1,000 won, and the currency (yuan) goes up by 100 won and 200 won every day, so even if you get around 2,000 won today, if it goes up tomorrow, you will lose money by doing business today,” and “If you sell it with government money, of course.” “Because of the losses, I try not to accept government money as much as possible,” he said.
It is understood that the frequency of using foreign currencies for transaction purposes is increasing as merchants prefer payment in dollars or yuan rather than domestic currencies.
In particular, it seems likely that such a surge in the exchange rate will encourage a rise in the prices of imported goods as well as domestically produced goods such as food and industrial products such as rice and corn. This is because the supply of imported grains and raw materials is likely to be decreasing due to the rise in foreign currency values.
A source said, “There are not many things that are not imported, and almost all products are related to imports, so when the money price (exchange rate) rises, the price of all products rises in the market,” adding, “People who do not trade or smuggle and do not touch foreign money. “I’m having a really hard time these days,” he said.
Source: www.dailynk.com
