The Daily NK reports that market prices in North Korea continue to respond well to the execution of Jang Song Taek. According to inside sources, on December 20th good quality rice was trading at 4,000 won/kg in Pyongyang. These prices are 1,100 won lower than in mid-November. A drop of 1,000 won in a month is highly unusual according to a source from Pyongyang.
The Daily NK offered several explanations for these trends, which focus on an increase in rice supplies. The distribution of food by the State has been particularly reliable this year with the state releasing a portion of wartime rice reserves in early 2013. There was a good harvest of potatoes, corn and rice, which has brought down market prices. Additionally, the State did not implement market controls in the wake of the execution of Jang Song Taek, after many people anticipated restrictions to be set up.
While rice prices have fallen recently, the US dollar exchange rate in Pyongyang climbed 300 won since mid-November reaching 8,400 won. A source in Pyongyang commentated that, “Generally the exchange rate runs parallel to the rice price and the two rise and fall together. Recently this has not been the case, as the number of people wanting to save their newly increased wages in US dollars is growing."
