According to Radio Free Asia, people can exchange foreign currency to North Korean won in many big stores in Pyongyang at a lower exchange rate than on the black market. As a result, the government authorized exchange rate is only nominal.

 

One source told Radio Free Asia that the exchange rate in the Pyongyang 1 Department Store and other businesses is 1 American dollar to 8,000 North Korean won and 1 Chinese yuan to 1,250 North Korean won. This is slightly cheaper than on the black market. The source added that there are 3 exchange rates in North Korea: the government authorized exchange rate, the black market’s exchange rate, and the state-run store’s exchange rate. However, the state-run store will exchange foreign currency to North Korean money but not vice-versa.

 

One defector, who is currently residing in America, said that since workers’ wages have increased, there will be inflation soon. If that happens, the exchange rate will gradually increase. The situation has caused North Koreans who possess dollars to be very mindful of change in the economic measure.