North Korea’s exchange rates for the dollar and yuan are holding steady as trade with China expands.
According to Daily NK’s regular survey of market prices in North Korea, the dollar was trading at KPW 8,210 in Pyongyang as of Mar. 19. This was just 0.8% percent lower than the rate two weeks ago, when it was trading at KPW 8,290 on Mar. 5.
Similar trends were at work in Sinuiju, North Pyongan Province, and Hyesan, Yanggang Province. In Sinuiju, the dollar was trading at KPW 8,240 on Mar. 19, 0.7% lower than it was on Mar. 5, when it was trading at KPW 8,300.
In Pyongyang, Sinuiju and Hyesan, the dollar has been holding steady in the low KPW 8,000s since January.
North Korean exchange rates for the dollar and yuan have shown instability over the three years since North Korean authorities closed the country’s borders in January 2020, fluctuating 15 to 20% depending on trends related to the restart of cross-border trade.
However, with North Korea’s trade volume recently increasing, the gap between international market rates and North Korea’s internal exchange rates have declined as domestic rates have began to reflect international rates.
According to figures released by China Customs, North Korea and China conducted USD 327.4 million in trade in January and February, a 140% increase from the same period last year.
However, in contrast to the dollar, the yuan has been trading moderately higher, with slightly higher fluctuations.
In Pyongyang, the yuan was trading at KPW 1,230 on Mar. 19, 3.3% higher than it was on Mar. 5, when it was trading at KPW 1,190. The yuan was trading at KPW 1,230 in Hyesan, too, 1.6% higher than it was on Mar. 5, when it was trading at KPW 1,210.
This may be explained by the strengthening of the yuan against the dollar internationally, and because demand for yuan has grown more than for the dollar in North Korea.
According to multiple Daily NK reporting partners, signals continue to emerge of the imminent restart of trade in regions where trade was banned during the COVID-19 pandemic, including North Hamgyong Province and Yanggang Province.
Daily NK reported in late 2022 that there were moves to build a quarantine station at Hyesan Customs House in Yanggang Province. There have also been rumors circulating recently that Samjang Customs House in Taehongdan County will reopen.
Additionally, Daily NK understands that smuggling is restarting again little by little in the border areas of North Pyongan Province and Yanggang Province, which may have boosted demand for yuan to some extent.
Translated by David Black. Edited by Robert Lauler.
Daily NK works with a network of reporting partners who live inside North Korea. 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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