North Korean Market Foreign Exchange Rate Surge Slows… Has It Reached Its Limit?

The dollar exchange rate is strong, the yuan exchange rate is slightly down… Control of private currency exchange transactions by mobilizing strike forces continues

The surge in the won-dollar exchange rate in the North Korean market is slowing down somewhat. There are even assessments within North Korea that it has reached its limit.

According to the North Korean market price survey regularly conducted by Daily NK, the North Korean won-dollar exchange rate in the Pyongyang market as of the 7th was 14,200 won, which is the same price as the price at the time of the survey on the 23rd of last month, two weeks ago.

The North Korean won-dollar exchange rate in Sinuiju, North Pyongan Province and Hyesan, Ryanggang Province showed a strong consolidation trend. As of the 7th, the North Korean won-dollar exchange rate in Sinuiju and Hyesan markets was surveyed at 14,200 won and 14,100 won, respectively, which were found to have risen by 100 won from the previous survey.

This is a completely different picture from the one in which the dollar exchange rate in the North Korean market suddenly soared by more than 35% following the strike force’s activities to control private currency transactions and transfers (remittances).

There are also voices within North Korea saying that the won-dollar exchange rate in the market has peaked.

A Pyongyang source said, “Before the strike team’s activities, the dollar was in the early 8,000 won range, but it has already surpassed 14,000 won,” adding, “The burden of the rising exchange rate has reached its limit.”

Meanwhile, the North Korean won-yuan exchange rate in the market in Pyongyang, Sinuiju, and Hyesan all showed a clear downward trend for the first time this year.

The North Korean Won-Yuan exchange rate at the Sinuiju Market on the 7th was surveyed at 1,860 Won. This is a 4.6% drop from the price surveyed on the 23rd of last month (1,950 Won).

Hyesan, where the yuan is used at a high rate in the market, also saw the yuan exchange rate fall by a similar amount. The North Korean won-yuan exchange rate at the Hyesan market on the 7th was also found to be 1,860 won, down 5.1% in two weeks.

It is understood that the slowdown in the exchange rate increase in the North Korean market is not due to the North Korean authorities’ loosening of foreign currency usage controls or the weakening of foreign exchange transaction strike forces. According to sources, daily NK the North Korean authorities are still strongly controlling private currency exchange transactions through the State Security Department and the Security Department strike forces.