North Korea’s foreign exchange market sees wild volatility over past few months



Analysis North Korea’s foreign exchange market sees wild volatility over past few months Collapse of foreign currency prices could increase economic difficulties of North Korean households Peter Ward June 21, 2021 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON Official exchange rates at the Mandal Credit Bank, Pyongyang, Spring 2018 \| Picture: NK Pro There have been dramatic moves in the North Korean currency markets since October last year, with the dollar and renminbi both trading between 10% and 25% under their average prices against the won. The flip side of this is that the won has surged against both: In March, the won was 30% above its average price for the November 2015-June 2021 period, and in April, it peaked against the dollar at 24% above average. These surges are unprecedented and represent a sign of significant financial instability. But what are the likely causes and who is likely to be most affected? Reporting from Read More © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01North Korea prioritizes shipyard construction as major naval base project stalls 02North Korea heralds naval revolution with launch of impressive new destroyer 03How secret North Korean customs rules lay bare a bizarre trade regime 04Elite absences hint at a North Korean power struggle ahead of party congress 05With Yoon’s exit, South Korea faces critical choices on North Korea strategy 06Tools of the trade: How North Korea launders billions in stolen cryptocurrency 07North Korea’s ‘new’ sniper rifle likely Austrian import or copy: Analysis 08North Korean ICBM factory upgrade project resumes, expands: Imagery

Analysis

North Korea’s foreign exchange market sees wild volatility over past few months

Collapse of foreign currency prices could increase economic difficulties of North Korean households

Peter Ward June 21, 2021

North Korea’s foreign exchange market sees wild volatility over past few months

Official exchange rates at the Mandal Credit Bank, Pyongyang, Spring 2018 | Picture: NK Pro

There have been dramatic moves in the North Korean currency markets since October last year, with the dollar and renminbi both trading between 10% and 25% under their average prices against the won. The flip side of this is that the won has surged against both: In March, the won was 30% above its average price for the November 2015-June 2021 period, and in April, it peaked against the dollar at 24% above average.

These surges are unprecedented and represent a sign of significant financial instability. But what are the likely causes and who is likely to be most affected? Reporting from

01North Korea prioritizes shipyard construction as major naval base project stalls
02North Korea heralds naval revolution with launch of impressive new destroyer
03How secret North Korean customs rules lay bare a bizarre trade regime
04Elite absences hint at a North Korean power struggle ahead of party congress
05With Yoon’s exit, South Korea faces critical choices on North Korea strategy
06Tools of the trade: How North Korea launders billions in stolen cryptocurrency
07North Korea’s ‘new’ sniper rifle likely Austrian import or copy: Analysis
08North Korean ICBM factory upgrade project resumes, expands: Imagery

North Korea’s foreign exchange market sees wild volatility over past few months

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Peter Ward