Foreign currency exchange rate surges in North Korea after resumption of North Korea-China freight trains… Confusion is ‘weighted’

A North Korean freight train entering Dandong Station in Liaoning Province, China from Sinuiju, North Korea on the morning of the 16th. People in white protective suits are seen in front of the freight train. /Photo = Daily NK

It has been found that the exchange rate of foreign currencies in North Korea has risen sharply since North Korea-China freight trains resumed after more than two years. However, as there is no guidance from the authorities on the resumption of trade, confusion among traders continues.

According to multiple insiders at Daily NK, the exchange rate between the dollar and the yuan has risen since the North Korean freight train entered Dandong, Liaoning Province, China on the 16th.

As of the 20th, the North Korean won/dollar price in Sinuiju (North Pyongan Province) rose to 5,700 won per dollar.

Compared to the price of KRW 4,700 in Sinuiju on the 11th, it has risen more than 20% in 9 days.

The yuan also rose sharply. On the 11th, 1 yuan was traded at 600 North Korean won, but on the 20th, after the North-China freight train resumed, it rose to 700 won.

Before the North Korean authorities closed the border in the name of Corona in January 2020, the North Korean won-dollar exchange rate was maintained at 8,000 won and the won-yuan exchange rate was maintained at 1,200 won. continued

Recently, the foreign currency exchange rate fell to 4,000 won against the dollar, and the exchange rate between the won and yuan fell to 600 won, half of what it was before the border closure.

However, as North Korea-China freight trains resumed, the foreign currency exchange rate began to rise in an instant, and the foreign exchange rate rise is evident in large cities such as Pyongyang and Cheongjin (North Hamgyong Province).

In the case of Chongjin, it was found that the won-dollar exchange rate rose to 5,570 won on the 20th.

In Pyongyang, the foreign currency exchange rate is rising at a similar level, but it is understood that the dollar and yuan are being traded at a slightly lower price than Shinuiju.

After international freight trains resumed, some traders, who expected trade expansion, are buying dollars and yuan.

However, North Korea-China freight train operations are not regular and there are no trade-related guidelines issued by the authorities, increasing confusion among local trade organizations and workers.

Some buy foreign currency in anticipation of trade expansion, but trade workers in Ryanggang Province and Hamgyeong Province are hesitant to purchase foreign currency.

A trade worker in Ryanggang Province said, “When the Sinuiju Bay trade opens, there is not much the trade officials (workers) in Ryanggang Province or Hamgyeong Province can do.” “I’m not sure if it’s meaningful to have only foreign currency prepared in a situation where I’m not sure whether I will be able to participate or not,” he said.

Source: DailyNK by

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