Falling N. Korean won – dollar exchange rate causes headaches among dollar holders
With major nations around the world such as the United States opening their purses to overcome the economic crisis brought on by COVID-19, currency values for the dollar, euro and yuan are falling. In North Korea, too, the USD-KPW exchange rate has reportedly fallen significantly recently.
The falling exchange rate has led to a reduction in foreign currency-related transactions, which suggests that North Korean authorities may have a tougher time acquiring dollars.
A source in Pyongyang told Daily NK on Thursday that dollars are currently trading at exceedingly low prices, and that while the supply loosened for a short time after Party Foundation Day on Oct. 10, “now money changers won’t offer dollars, so you can’t buy them.”
In fact, the exchange rate for dollars in Pyongyang had fallen 4.6% from KPW 8,400 in September to KPW 8,010 on Oct. 12, the first weekday after Party Foundation Day. It seems that in the middle of last month, when the exchange rate fell by a relatively modest amount, one could purchase dollars cheaply. ......