The Mainichi Shimbun reported that the exchange rate between the North Korean won and the U.S. dollar surged from around 8,000 won per dollar in April to a staggering 32,000 won per dollar in mid-November. This dramatic decline in the currency's value is attributed to a combination of factors, including the reopening of the North Korean economy after COVID-19 lockdowns and increased public distrust in the government's economic policies.
The easing of border restrictions has led to a surge in demand for foreign currency, particularly U.S. dollars and Chinese yuan, as North Koreans seek to purchase imported goods. This increased demand, coupled with concerns about potential currency reforms, has fueled a panic-buying frenzy, further exacerbating the currency crisis, according to the report.
In response to the deteriorating economic situation and growing public discontent, the North Korean government has reportedly taken harsh measures, including the execution of individuals accused of spreading rumors about currency reforms. The regime has also intensified its crackdown on smuggling and illicit economic activities.
The Mainichi Shimbun also reported that there have been several incidents of sabotage at industrial facilities, raising concerns about social unrest and potential acts of defiance against the government.
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