Rice Prices in N.Korea Plunge 40%

The price of rice and foreign currency exchange rate in North Korea have both dropped drastically in a matter of a week, according to Radio Free Asia.

The radio station reported Saturday that rice in Hyesan, Ryanggang Province was selling for 2,000 won per kg as of Friday, down from 3,300 won or nearly 40 percent from six days earlier. The Chinese yuan was trading for 400 North Korean won, down from 520.

A local source said that various rumors had prompted merchants to stockpile rice and then suddenly release it. The source also added that the rice requisitioned for the military, a key cause of recent price increases, is being siphoned off and sold, bringing the price down.