USD-KPW exchange rate begins climbing amid hopes for restart in trade
After plummeting to new lows right after the Eighth Party Congress, the USD-KPW exchange rate has begun climbing as hopes grow that trade will soon resume. In fact, small-scale smuggling has started in certain regions, and there is talk that the border lockdown will be lifted in the first half of the year.
Daily NK’s own reporting determined that as of Monday, the North Korean won was trading at KPW 7,300 to the dollar in Pyongyang, KPW 7,400 in Sinuiju and KPW 7,420 in Hyesan.
Compared to Jan. 11, the rate had climbed 20% in Pyongyang, 25% in Sinuiju and 28% in Hyesan.
The RMB-KPW exchange rate also climbed. Daily NK determined on Monday that the yuan was trading at KPW 980 in Pyongyang, KPW 1,000 in Sinuiju and KPW 1,080 in Hyesan. This means that since Jan. 11 the exchange rate has risen 10% to 16%, depending on the region.
The yuan has risen less precipitously than the dollar because the Chinese currency’s depreciation had been less dramatic than that of the greenback. What’s more, people have continued to use yuan in some regions along the Sino-North Korean border even after the border was sealed.
Expectations that trade will resume are reportedly fueling the recent turnaround in the exchange rates, which had been plummeting since October. ......
[Source: Daily NK]
