This economic situation is particularly devastating for families without access to foreign currency

By Seulkee Jang 

Market prices in North Korea are rising at an unprecedented rate, with rice costs and Chinese yuan exchange rates reaching record highs.

Daily NK’s market survey reveals that on Dec. 7, the U.S. dollar traded at 21,000 North Korean won in Pyongyang – a 17.3% increase from Nov. 24. Similar increases occurred in Sinuiju and Hyesan, where the dollar reached 21,400 won, marking an 18.9% rise.

The Chinese yuan saw even steeper increases, trading at 3,200 won in Sinuiju and 3,210 won in Hyesan – roughly 33% higher than two weeks earlier. This marks the first time the yuan has exceeded 3,000 won nationwide, breaking out of its previous 2,000-3,000 won range.

Several factors are driving these increases: North Korean agencies are purchasing large quantities of imported supplies for year-end production quotas, demand for foreign currency is rising due to its increasing value, and government controls on money changing have inflated transaction fees.

Rice prices have also hit unprecedented levels. In Pyongyang, rice reached 9,250 won per kilogram on Dec. 7 – a 15.6% increase from Nov. 24 and the first time it has exceeded 9,000 won since Daily NK began its market surveys. Hyesan saw similar increases, with rice reaching 9,450 won per kilogram. Notably, these price increases have continued despite the usual dampening effect of the harvest season.

While corn – the staple food for low-income families – has seen smaller increases of 2.6% in Pyongyang and 4.9% in Hyesan, prices still reached record highs. The relatively modest increase is attributed to a good harvest and lower demand for corn as an alternative currency compared to rice.

This economic situation is particularly devastating for families without access to foreign currency. “People who can’t earn dollars or yuan are skipping meals,” a Daily NK source in North Hamgyong province reported. “Many are surviving on corn powder gruel because they can’t afford whole corn.”

Small-scale merchants and food vendors, who typically can’t access foreign currency, are especially vulnerable. “You need dollars or yuan to survive now, but earning them isn’t easy,” the source added. “More households are becoming food-poor, and the situation is growing increasingly dire.”

Published Date: December 18, 2024