North Korea's currency and commodity markets in turmoil as borders stay closed

Published 2021년 6월 23일

Tridge summary

North Korea is experiencing economic instability due to the lack of resumption in major trade with China, as reported by media outlets and analysts. This instability is reflected in the fluctuation of currency exchange rates and commodity prices, causing hardship for the population, especially in the face of food shortages. In May, China's exports to North Korea significantly dropped, indicating no easing of border closures expected soon. This situation has led to volatility in the prices of essential goods and fuels, exacerbating the already tense economic conditions. Despite the North Korean leader's statement on economic improvement, the country is grappling with high prices for basic supplies and a severe food situation, particularly in regions outside major cities.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

SEOUL: Currency exchange rates and commodity prices appear to be wildly fluctuating in North Korea as a resumption in major trade with China hasn't materialised, media reports and analysts say, increasing the hardship for residents facing food shortages. After steadily rebounding in the first few months of the year, China's exports to North Korea in May fell to US$2.71 million from US$28.75 million in April, quashing hopes among traders along the border that more than a year of anti-coronavirus closures could soon ease. North Korea is highly insular and it is difficult to pinpoint the situation within the country. But reports this week that China, its biggest ally, plans to keep pandemic border restrictions in place for at least another year have cast doubt on North Korea's prospects. In some areas, that appears to be among the factors that sparked significant volatility in foreign exchange rates and the prices of some key goods. "The fuel and forex price swings are likely ...

Source: Channelnewsasia