China, North Korea traders hit by currency revaluation

Chinese traders at the North Korean border have been hit by the sudden revaluation of the North Korean won, Reuters reported. Traders in the border city of Dandong, who sell vitamins and nutritional supplements to North Korea, say that many shops have been closed as North Koreans wait to see the full impact of the currency revaluation. Last week Pyongyang announced that old notes have to be exchanged for new notes at a rate of 100 to one, as well as capping the number of notes that could be traded, wiping out savings for many of the country’s more affluent citizens. "Our clients are all waiting to see what the new exchange rate will be. Those holding goods are waiting to sell," said one Chinese pharmaceuticals merchant. Chinese traders have been taking advantage of a significant mark-up on the cost of pharmaceuticals in North Korea, enabling them to make significant profits on cheap Chinese-made drugs.