Fluctuating exchange rates cause troubles
North Korea’s exchange rates were fluctuating wildly. In Pyongsong on May 5, one USD started trading at KPW 8,150 but then rose to KPW 8,500 before suddenly falling back down to KPW 7,500 in one day.
Following the currency ramification on November 30, 2009, the exchange rate between the USD and KPW gradually stabilized over the two years. By 2011, one USD was selling for KPW 4,000-5,000 and by mid-2014, one USD was equal to around KPW 8,000.
The closure of the Northern border in late January has caused wild fluctuations in the exchange rate and commodity prices. Even ordinary traders who have long conducted relatively stable transactions in foreign currency are now afraid of losses because of unstable fluctuations in the exchange rate. ......
[Source: Daily NK]
