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Date : August 17, 2012
Skyrocketing Prices and the Exchange Rate in North Korea
   http:// http://www.nkradio.org/news/9600 [472]
 
On August 13th, according to several traders to North Korea, the prices for goods and the exchange rate for Chinese money in North Korea have skyrocketed since the introduction of the 6.28 New Economic Management System. The price for food right now has risen up to 6,000 won per kilogram, and the exchange rate for Chinese money (1 yuan) has risen to 930 won. 
 
According to the sources, the markets in Pyongyang, Pyongsung, Shin ouiju, Chengjin, Hanheung, and all over the country are stagnant, and living has become more difficult because of the skyrocketing prices and the exchange rate. 
 
North Koreans have expected reform and opening up since young Kim Jeong Eun and his wife took over the leadership. However, this New Economic Management System has confused the citizens. The reason for that is because many citizens have already experienced similar reforms when Kim Jeong Il introduced the July 1st Economic Management Reform Measures. At the time, prices and the exchange rates dramatically increased, and the new economic management system regulation, which Kim Jeong Il proclaimed to the citizens, was not fulfilled at all.
 
Less than an year after the proclamation of the July 1st Economic Management Reform Measures, Kim Jeong Il forced citizens to pay a public loan contribution by promising them that they would be paid back within 5 years. That promise, however, has not been fulfilled even after more than 10 years, and those citizens, who paid the contribution, have drowned in debt.
 
The sources stated that the North Korean citizens, who experienced the similar situation in 2002, are preparing for Kim Jeong Eun's New Economic Management System. To prepare for the prices skyrocketing, they are hoarding Chinese money, and prices and the exchange rates keep rising. Despite the government's control and regulation, the exchange rate still does not go down.
 
The sources emphasized that nobody believes in Kim Jeong Eun's reforms and propaganda anymore, and people keep trying to fund their living by hoarding Chinese money.

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