Food Prices Are at a Devastating High in North Korea as China Ceases all Trades And Close The Borders
North Korea is at a devastating state with currency exchange rates and essential commodity prices rise and fall severely. As the borders still remained closed, the country is unable to do trades with China. The food shortage has taken a severe form, the media reports say.
The export of China to North Korea is down to $2.71 million in May from $28.75 million in April. The borders are closed for more than a year due to the pandemic.
Due to the political situation in the country, it is hard to assess the situation from the outside. But according to the reports this week, North Korea’s biggest supporter and exporter China has decided to keep the borders closed for another year.
A Seoul-based website, Daily NK has been keeping tabs on the North Korean economy. It has been reported that that the currency in the country recently experienced a surge of 15 to 20 percent against the U.S. dollar and China's RMB.
The website also revealed that after the trade between North Korea and China did not resume, many people in the country started selling off their dollars and yuan and this had led to the surge.
The 38 North program in the US that tracks North Korea said that the country had managed to maintain stability for years. But the recent fluctuation in prices and internal exchange rates can lead to popular desperation and postpone the possibilities of resuming trade with China.
Though the leader of the country Kim Jong Un said last week that the economy of NK has improved, he still expressed concerns over the food shortage situation due to the pandemic and typhoons last year.
According to the state media, the government plans to distribute more grains to the people. As per the reports of Daily NK, the situation has improved and the price of rice and corn has fallen in major cities like Pyongyang after the government started giving rations to the people. But in other areas, the situation remains the same.
Banana is at $45 per kilogram and some shampoos cost around $200 in the country right now.
Ward stated that as per the reports from Daily NK and Asian Press, the food prices are extremely high in areas outside the major cities. And if the situation remains the same, there will be a severe hunger and starvation issue among the poor community in North Korea.
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