Currency arbitrage in North Korea

By Benjamin Katzeff Silberstein

North Korean state personnel are making good money from currency arbitrage. Daily NK has a story on how security personnel in the country regularly buy foreign currency in border towns where it’s cheaper than in cities like Pyongyang:

Using their authority over screening passengers on the train as a guise, MPS railway personnel in on the scheme actively pursue exchange deals in main border towns such as North Hamgyong Province’s Rason and North Pyongan Province’s Sinuiju. Each day, Pyongyang-based railway cadres pick out four members who are known to be good at nabbing these deals and put two as a team on the Pyongyang-Sinuiju (trains no. 5, 6) and Pyongyang-Duman River (trains no. 7, 8) trains, so they can exchange money, according to the source.   

This one example among many of state personnel benefit from informal economic activity, through their official roles. It often makes little sense to talk about the market versus the state, as if they were two wholly separate entities.

Read the full story:
MPS personnel profiting on exchange rate disparities
Choi Song Min
Daily NK 
12-01-2015

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