Running a private currency exchange is illegal in North Korea, so the two media companies, Asia Press International of Japan and Seoul-based Daily NK, use secret human networks inside the isolated country to compile their rates, according to Jiro Ishimaru, a journalist at Asia Press International, and Lee Sang Yong, editor in chief of Daily NK. The unofficial rate is around 5,200 won per dollar. Its official rate has been steady at around 100 won per dollar for the past decade, an artificially strong level with no use as an indicator. North Korea’s unofficial exchange rate, which is tracked by the two news outlets, is formed in the country’s “jangmadang,” local markets that have grown to become a large informal economy. The North may be trying to boost the won to support the economy, but continuing such attempts “could end up harming the real economy even more.” “A currency normally depreciates when a country is facing troubles, but the opposite is happening in North Korea,” said Kim Byung-yeon, a professor of economics at Seoul National University. Whatever the reason, most observers agree it’s no good thing. There are competing theories for why it’s happening, ranging from Kim’s pandemic border closure killing demand for foreign currencies to the isolated country instituting a crackdown on their use. Keep reading list of 4 items list 1 of 4 Smell that: The rise of India’s ittar industry list 2 of 4 Will oil prices rise after Red Sea shipping curbs amid Houthi attacks? list 3 of 4 Can we ever put an end to global hunger? list 4 of 4 China’s youth compete for stable gov’t jobs in unstable economic times end of listīut the North Korean won has jumped 25% against the dollar this year, calculated on a monthly average basis using the numbers reported by the two media organizations that track it.
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