＜Inside N. Korea＞N. Korean Won Plunges 30-40% as Dollar and Yuan Surge Due to Foreign Currency Shortage; Rice Prices More Than Double, Food and Fuel Costs Skyrocket

North Korea has been experiencing chaos among residents since last weekend, with foreign currency exchange rates soaring and fuel and food prices surging. (ISHIMARU Jiro / KANG Ji-won)

On October 17, a reporting partner living in Ryanggang Province reported news of the sharp rise in foreign currency rates. The increase was abnormal—33-39% compared to the previous week. ASIAPRESS urgently requested investigations from other reporting partners in Ryanggang Province and two reporting partners in North Hamgyong Province. As a result, we received reports that fuel and food prices were similarly skyrocketing.

Below are the average prices from both regions, in North Korean won:

As of October 23, there is no information from other regions including the capital Pyongyang.

◆Won Decline Due to Domestic Foreign Currency Depletion

Why has foreign currency suddenly surged? The common opinion among reporting partners is "because there's no foreign currency in the country."

"Since September, trade with China has become active, and trading companies have been competing to buy foreign currency to pay for imports, driving prices up steadily" (Reporting Partner A in Ryanggang Province)

"Money changers from Pyongyang are coming to the border areas to buy foreign currency, targeting (illegal remittances through brokers) sent by North Korean defectors living in South Korea for the Chuseok holiday" (Reporting Partner B in Ryanggang Province)

"The bank exchange rate is set at 3,000 won per yuan and 15,000 won per dollar, but nobody trades at those rates. On the 20th, authorities again notified residents of strict crackdowns on illegal money changing, but there are many people wanting to buy foreign currency. Money changers say foreign currency will continue to rise" (Reporting Partner C in North Hamgyong Province)

◆"North Korean Money is Practically Worthless Paper"

As the decline of the North Korean won continues, inconveniences are increasing.

"North Korean money is practically worthless paper. 10,000 Chinese yuan (about 2.02 million Korean won) easily exceeds 50 million won. You need a handcart to exchange large amounts of money,” said Reporting Partner A.

The highest denomination North Korean banknote is 5,000 won. For 50 million won, more than 10,000 bills would be needed. Even trying to handle this inconvenience through bank transfers risks detection of illegal money changing by authorities.