If you look up the exchange rate for 1 US dollar in North Korean won on a standard currency app, you’ll see a number around 900 KPW. It looks clean. Official. Reliable.
It is also almost entirely a fiction.
In Pyongyang, money doesn't work like it does in London or New York. There isn't just one "price" for a dollar. Instead, there is a massive, yawning chasm between what the North Korean government says a dollar is worth and what a hungry person in a jangmadang (market) actually pays for it. Honestly, if you tried to buy anything significant with 900 won in a local market, you’d be laughed at—or worse.
Why the Official Rate for 1 US Dollar in North Korean Won is a Myth
The official rate is a ghost. For decades, the North Korean Central Bank has pegged the North Korean won at an artificially high value to project a sense of economic stability to the outside world. It's a political statement, not a financial reality.
In early 2026, the official mid-market rate sits stubbornly near 900 KPW per 1 USD. This is the rate used for government accounting, state-run international trade, and the few state-approved shops where foreign diplomats might wander. But here's the kicker: the average North Korean citizen never sees this rate.
If you're a local trying to buy rice, shoes, or a solar panel from China, that 900 won "official" value is meaningless. You have to look at the black market, or the "market rate."
The Black Market Reality: 40,000 Won and Beyond
The real economy happens in the shadows. For years, the market rate for 1 US dollar in North Korean won hovered around 8,000 KPW. It was stable for a long time, surprisingly so. But something broke recently.
By late 2025 and moving into early 2026, reports from organizations like Daily NK and Asia Press—who speak to secret sources inside the country—indicated a total collapse in the won's value. In some regions, the rate spiked to over 40,000 KPW for a single dollar.
Think about that for a second.
The "official" rate says your dollar is worth 900 won. The "real" world says it’s worth 40,000 won. That is a 4,300% difference. It's the kind of economic decoupling that makes traditional financial analysis impossible.
Why did the won crash?
- Border lockdowns: Even as trade with China resumes post-pandemic, the flow is tightly controlled. Goods are scarce.
- Government Crackdowns: The Kim Jong Un regime has been trying to reclaim control over the economy. They’ve been banning the use of foreign currency in markets, forcing people back to the won.
- Panic Buying: When the state tries to ban dollars, people want dollars even more. It’s basic psychology. They see the won as a ticking time bomb.
How People Actually Pay for Things
You’ve got to understand that "money" in North Korea is a multi-tier system. If you are a member of the elite in Pyongyang, you might have a "Narae" debit card loaded with foreign exchange. You're living in a different world.
For everyone else, it’s about the Chinese Yuan (RMB) or the US Dollar.
Basically, the North Korean won has become a "small change" currency. People use it for tiny transactions—buying a piece of gum or a single cigarette. For anything big, like a television or a bag of grain, they use Yuan or Dollars. Why? Because if the government decides to do a "currency reform" tomorrow (like they did in 2009, which wiped out everyone's life savings), your won becomes worthless paper. A greenback is forever.
The Danger of "Dollarization"
Economists call this "dollarization." It sounds fancy, but it just means the local currency has failed. The North Korean government hates this. It means they lose the ability to control the money supply.
Recently, the state has been much more aggressive. They are reportedly arresting people for using dollars in the markets. They want you to use the won. But the more they push the won, the more the value of 1 US dollar in North Korean won fluctuates wildly on the black market. It’s a tug-of-war between a regime that wants total control and a population that just wants to survive.
The 2026 Outlook
As we move through 2026, the volatility is insane. One week, the dollar might be 15,000 won; the next, it’s 45,000. This isn't just a number on a screen. When the won loses value, the price of corn goes up. When the price of corn goes up, people go hungry.
Actionable Insights for Tracking the Rate
If you are actually trying to track the value of 1 US dollar in North Korean won for research or business purposes, stop looking at Google’s currency converter. It won’t help you.
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- Follow specialized news outlets: Check Daily NK or Radio Free Asia. They have networks of informants who check the actual prices in the Hyesan or Sinuiju markets every week.
- Watch the Chinese Yuan: The won often tracks the Yuan more closely than the dollar because China is the only major trade partner. If the Yuan-Won rate spikes, the Dollar-Won rate is right behind it.
- Monitor "Rice Prices": In North Korea, the price of rice is the real inflation index. If the price of a kilo of rice in Pyongyang doubles, you can bet the won has plummeted against the dollar, regardless of what the central bank says.
Don't be fooled by the "official" numbers. In an economy as closed as North Korea's, the truth isn't found in a bank ledger; it’s found in the pockets of the market traders who know exactly what a dollar is worth: their survival.