The North Korean won has weakened over 10% against the dollar during the last two weeks. This comes after repeated fluctuations from the start of the year following the start of China-North Korea freight train service, which later declined and then was suspended altogether.
Meanwhile, grain prices have fallen across the board after climbing since January.
Daily NK’s regular survey of North Korean prices determined that as of Monday, the dollar was trading at KPW 7,300 in Pyongyang. This represents an 11% climb from May 16, just half a month ago, when the dollar was trading at KPW 6,560.
The dollar strengthened in Sinuiju and Hyesan, too. The greenback was trading at KPW 7,350 in Sinuiju and KPW 7,260 in Hyesan, about 10-11% more than it was on May 16.
On the other hand, the yuan slightly weakened against the won. The yuan was trading at KPW 810 in Pyongyang and KPW 830 in Sinuiju and Hyesan on Monday, holding steady or trading 1-2% less than in the previous survey.
The differences apparently reflect international prices, including the recent strengthening of the dollar and weakening of the yuan.
In a telephone conversation with Daily NK, Mun Sung Min, a research associate with the North Korean Economy Team of the Bank of Korea’s Economic Research Institute in Seoul, said international exchange rates are generally reflected in North Korea. “As recently as early last month, the dollar was clearly strengthening while the yuan was clearly weakening, and these trends may have impacted North Korean markets, too,” he said.
However, since the middle of last month, the dollar appears to be weakening while the yuan has begun strengthening in international markets.
Regarding this trend, Mun said while international prices are reflected in North Korea, “the North Korean market could respond a bit late because the market is inefficient and information moves slowly.”
Meanwhile, the price of rice, corn and other grains fell across the board after climbing from the start of the year. As of Monday, a kilogram of rice in the market cost KPW 5,000 in Pyongyang, KPW 5,200 in Sinuiju and KPW 5,300 in Hyesan.
Basically, prices fell KPW 300 to 400 from May 16, when grain cost KPW 5,400 in Pyongyang, KPW 5,600 in Sinuiju and KPW 5,640 in Hyesan.
Corn fell slightly, too. A kilogram of corn cost KPW 2,600 in Pyongyang, KPW 2,700 in Sinuiju and KPW 2,800 in Hyesan, about KPW 150 to 240 less than it did in the last survey.
The falling rice and corn prices in North Korean markets despite continued regional lockdowns and controls in the wake of COVID-19 appear due to the availability of alternative foodstuffs as farmers begin harvesting potatoes and other grains.
“Potatoes and barley are ready to be harvested in some regions and, nationwide, the harvest will soon begin in earnest, which appears to have led fewer people to seek out rice or corn,” a Daily NK source in North Korea said, adding, “It’s not because there were government distributions of food.”
Translated by David Black. Edited by Robert Lauler.
Please direct any comments or questions about this article to dailynkenglish@uni-media.net.
