North Korean market prices have continued their downward trajectory, with falling exchange rates simultaneously driving down the cost of both grain and imported goods.
According to Daily NK’s regular survey of North Korean market prices, on Feb. 1 one kilogram of rice sold for 15,100 North Korean won (approximately $0.42) at a Pyongyang market. This represents a 3.8% decline from 15,700 won ($0.44) recorded in the previous survey.
While the drop is more moderate than the 12.8% plunge in Pyongyang rice prices observed during a two-week period between early and mid-January, such price declines during January and February are quite unusual for North Korean markets.
Rice prices fell simultaneously in markets across other regions, including Sinuiju in North Pyongan province and Hyesan in Ryanggang province. On Feb. 1, the average rice price across Pyongyang, Sinuiju and Hyesan markets was 15,130 won ($0.42) per kilogram.
Market prices for corn also remained on a downward trend, though the rate of decline varied by region.
On Feb. 1, corn sold for 3,900 won ($0.11) per kilogram at a Pyongyang market, down 2.5% from the previous survey. On the same day, corn prices were 3,800 won ($0.11) in Sinuiju and 4,000 won ($0.11) in Hyesan, representing declines of 7.3% and 7% respectively from the previous survey — more pronounced drops than in Pyongyang.
The regional variation in decline rates appears to be related to differences in grain sales volumes at state distribution centers and market supply levels.
Imported goods follow similar pattern
Prices for imported commodities such as gasoline and diesel also continued their decline. On Feb. 1, gasoline and diesel sold for 40,100 won ($1.12) and 38,200 won ($1.07) per kilogram respectively at a Pyongyang market, down 3.8% and 2.6% from the previous survey.
The current price decline in North Korean markets is largely attributed to falling exchange rates. In North Korean markets, the dollar and yuan effectively serve as the real standard for pricing goods, meaning that when exchange rates fall, prices converted into North Korean won drop immediately as well.
Indeed, on Feb. 1, the North Korean won-dollar market exchange rate in Pyongyang was 35,700 won per dollar, down 4% from 37,200 won in the previous survey. On the same day, Pyongyang’s North Korean won-yuan market exchange rate (5,000 won per yuan) also fell 2% compared to the previous survey. Foreign currency exchange rates in other regions including Sinuiju and Hyesan showed similar trends.
North Korea’s foreign currency exchange rates have been declining since late December 2025, influenced by the authorities’ strengthened border surveillance and trade controls ahead of the Ninth Party Congress, as well as intensified crackdowns on personal foreign currency transactions.
According to a Ryanggang province source, state-level smuggling operations that had been conducted along the Hyesan border area have been suspended since late last year. Small and medium-sized trading companies have also reportedly not received their annually allocated trade permits.
In particular, North Korean authorities are strengthening enforcement of personal foreign currency transactions based on the Foreign Currency Management Law. In this regard, on Jan. 20 in Sinuiju, North Pyongan province, wholesalers who had conducted transactions in foreign currency were detained by the security department.
Beyond these factors, some observers note that the rapid price increases in North Korea over recent years — which reduced real wages and diminished residents’ purchasing power — have also contributed to the price decline.
Cho Chung-hee, director of the Good Farmers Research Institute, told Daily NK that “while the temporary trade controls ahead of the Ninth Party Congress have reduced foreign currency demand, causing exchange rates to fall and affect prices, the decline in residents’ purchasing power due to prolonged economic hardship is also fueling the price drop.”
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: dailynk.com
