North Korea’s foreign exchange rates have weakened recently after climbing due to expectations that overland trade with China would expand in mid-May.
According to Daily NK’s regular survey of North Korean exchange rates, the dollar was trading at KPW 8,216 in Pyongyang as of May 14. This was about 2.2% less than it was trading in the previous survey on Apr. 30, when the greenback was trading at KPW 8,400.
The dollar rate in Pyongyang had been climbing from early April on the back of rising expectations that trade would expand. At the end of last month, it had climbed about 5% in just two weeks.
In the latest survey, the dollar rate had slightly fallen in other regions, too.
In Sinuiju, the dollar was trading at KPW 8,230 as of May 14, down about 1.6% from the Apr. 30 survey. In Hyesan, the dollar was at KPW 8,250, down about 1.2% from the previous survey.
The yuan was also trading lower in North Korea.
In Sinuiju, the yuan was trading at KPW 1,220, about 2.4% lower than it was on Apr. 30.
The yuan had fallen by negligible amounts in Pyongyang and Hyesan. The yuan was trading at KPW 1,200 and 1,220 in Pyongyang and Hyesan, respectively, as of May 14, just KPW 10 less than on Apr. 30.
Falling expectations regarding trade
North Korea’s exchange rates are falling due to plummeting expectations regarding trade given that an expansion of trade with China has failed to materialize despite government orders and other signs that suggested moves to expand overland trade.
Speaking on condition of anonymity due to security concerns, a Daily NK reporting partner said recently that most trade workers and judiciary officials in the border region expected overland trade between Sinuiju and Dandong to restart on May 15.
According to him, workers at trading companies were looking forward to the restart of trade because they heard through judiciary officials that the overland route would reopen on May 15.
Quoting a reporting partner, Daily NK reported in late April that North Pyongan Province’s provincial party committee carried out a trade-related lecture aimed at provincial trade officials and ordered all departments at Sinuiju Customs House to normalize operations.
Chinese customs authorities also appeared to be moving towards restarting overland trade, issuing permits allowing drivers of cargo trucks to cross the border with North Korea. This development sparked rumors that the overland route would reopen in early or mid-May.
Though the route failed to reopen on May 15, judiciary officials in North Korea are reportedly saying once again that cargo truck service over the overland route will start from around mid-June.
Translated by David Black. Edited by Robert Lauler.
Daily NK works with a network of reporting partners who live inside North Korea and China. Their identities remain anonymous due to security concerns. More information about Daily NK’s reporting partner network and information gathering activities can be found on our FAQ page here.
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