Market exchange rates in North Korea have hit another high as the US dollar climbs in international markets and trading activity expands in certain parts of North Korea.
According to Daily NK’s regular survey of market prices in North Korea, the yuan was trading at KPW 1,810 in markets in Hyesan, Yanggang Province, as of Apr. 14.
The yuan had climbed another 12.4% in the two weeks since the previous survey on Mar. 31, when the Chinese currency was trading at KPW 1,610, a record high since Daily NK began tracking North Korea’s market exchange rates in 2015.
While the exchange rate itself was highest in Hyesan, in Pyongyang and Sinuiju, North Pyongan Province, the rate climbed faster from the previous survey two weeks earlier.
The rate climbed fastest in Sinuiju, where the yuan was trading at KPW 1,800 at a particular market in the city as of Apr. 14, climbing 14.6% from Mar. 31, when it was trading at KPW 1,570.
In Pyongyang, the market rate for the yuan was KPW 1,750 as of Apr. 14, jumping 12.9% over two weeks.
Increased activity by regional trading companies, in line with North Korea’s “20×10 regional development policy,” appears to be directly impacting the country’s exchange rates.
The yuan has climbed from the KPW 1,200s to the KPW 1,400s and recently crossed KPW 1,800 since the North Korean government announced the 20×10 regional development policy in mid-January.
However, the market rate for the dollar has been climbing at a relatively gentle pace recently. In Pyongyang’s markets, the dollar was trading at KPW 8,750 as of Apr. 14, a modest climb of just KPW 30 from Mar. 30, when it was trading at KPW 8,720. The dollar climbed by similarly modest amounts in Sinuiju and Hyesan, too.
On Jan. 7, before the announcement of the 20×10 regional development policy, the dollar was trading at KPW 8,300 and the yuan at KPW 1,250 in Pyongyang, while the dollar-yuan rate was RMB 6.64 to the dollar. Now, the dollar is worth RMB 5 in Pyongyang. This signifies how much the yuan has strengthened in North Korea’s markets. The fluctuation is likely due to growing demand for the yuan as more regional trading companies begin trading with China.
Prices for imported food items climb as well
Meanwhile, as market exchange rates climb, the prices of imported foodstuffs are also increasing.
In the case of sugar, a common import, a kilogram cost KPW 10,500 in one market in Pyongyang on Apr. 14. The price of sugar had remained under KPW 10,000 throughout this year. Essentially, the price of a kilogram of sugar in Pyongyang’s markets had skyrocketed 23.5% in the two weeks since the previous survey on Mar. 31, when the price was KPW 8,500.
A kilogram of cooking oil cost KPW 13,800 in Pyongyang’s markets, 3% higher than in the previous survey, when it cost KPW 13,400. Cooking oil had cost between KPW 11,000 and KPW 13,000 throughout much of the year, but climbed past KPW 13,400 late last month. Cooking oil began climbing in price before sugar did.
Flour suddenly spiked in price late last month. In the middle of March, flour cost KPW 8,300 a kilogram, but late last month, the price climbed 24% to KPW 10,300 in Pyongyang.
Only gasoline and diesel prices appear to be falling in North Korean markets.
In one market in Pyongyang, a kilogram of gasoline cost KPW 11,500 on Apr. 14, 5% lower than on Mar. 31, when it cost KPW 12,100. Likewise, diesel cost KPW 9,000 a kilogram, 5.3% less than it did two weeks ago when it cost KPW 9,500.
The price of gasoline and diesel appears to be falling in North Korea as oil imports from Russia increase. While trade between North Korea and Russia is sometimes conducted in dollars, most of it is conducted in kind and thus minimally impacted by the exchange rate.
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