Pyongyang’s official currency exchanges are expanding beyond the dollar and yuan to handle yen, euros and rubles as North Korea diversifies its trade relationships.
A Daily NK source in Pyongyang said recently that official exchange offices in central districts handle various foreign currencies, with yen and euro exchange frequency increasing significantly in recent months.
Among yen, euros and rubles, demand for Japanese yen has grown most noticeably.
“Yen demand has increased as more Japanese products flow in,” the source said. “Of course, they don’t come directly from Japan but through China, but more diverse Japanese goods are being imported than before.”
North Korean trade workers primarily import Japanese electronics and used cars, according to reports.
Euro demand has also risen as imports of European-made automobiles, furniture and luxury goods have increased, the source said.
Ruble demand remains relatively low. While small amounts of rubles can be exchanged for North Korean currency, some exchange offices don’t handle rubles at all due to limited demand compared to yen or euros.
Despite expanding North Korea-Russia trade ties, transactions are primarily settled in dollars rather than rubles, and most deals involve barter trade, keeping ruble demand low in Pyongyang.
Daily Exchange Rate Updates Continue
North Korean authorities continue issuing official exchange rates once daily. In March, Daily NK reported that authorities announce floating exchange rates around 10 a.m. daily through national State Foreign Exchange Service offices and Cooperative Currency Exchanges nationwide.
These rate announcements include yen and euros. On Dec. 19, one official exchange office in Pyongyang’s Jung District posted rates of 18,200 North Korean won per dollar, 2,400 won per yuan, 12,600 won per 100 yen and 21,500 won per euro.
Converting these rates to dollar values shows a dollar-yuan rate of 7.58, euro-dollar rate of 1.18 and dollar-yen rate of 144.44 — levels similar to international markets.
However, exchange offices nationwide don’t post uniform rates. Regional banks set rates autonomously within certain parameters based on local market conditions and foreign currency reserves.
On Dec. 19, an official exchange office in Kangdong County on Pyongyang’s outskirts posted rates of 17,800 won per dollar, 2,600 won per yuan, 12,100 won per 100 yen and 20,800 won per euro — slightly different from the Jung district office.
“Kangdong county produces coal, so there’s more buying and selling of dollars and yuan than North Korean money,” the source said. “Dollar and yuan demand varies depending on which agency handles coal exports, and rates are set considering these situations.”
While authorities post daily floating rates similar to market levels to encourage use of official exchanges, gaps between market and official rates can reach 25%.
On Dec. 19, market rates near Jung district were 21,000 won per dollar, 3,000 won per yuan, 14,800 won per 100 yen and 24,900 won per euro. Compared to official exchange rates, informal market rates were 15.4% higher for dollars, 25% for yuan, 17.5% for yen and 15% for euros.
Since market rates offer better value than official rates, people exchanging foreign currency for North Korean money still prefer private money changers over official exchange offices.
