North Korea closes and currency soars 22.5%

Posted on Nov 30, 2020 at 2:04 p.m.Updated Nov 30, 2020 6:49 PM

North Korea’s currency has jumped astonishing over 20% this year against the dollar. A performance much better than its South Korean counterpart, which has gained 3.5% against the greenback since early January. Two currencies that everything opposes. One is that of an interventionist and closed economy and the other of a “high-tech” and innovative democracy.

The Covid-19 crisis led to a closure of North Korea’s borders in January and a sudden halt in legal or contraband trade. However, it is foreign currencies such as the dollar and especially the yuan that are used to pay for imports, particularly from China (textiles, consumer goods, electrical products, etc.). Demand for dollars fell and the exchange rate for the North Korean currency rose sharply. Some may have crashed dollars and accentuated the greenback’s plunge.

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