North Korean economics 101: How much is a dollar worth?

PYONGYANG, North Korea (AP) — To get a feel for how North Korea's economy works, go buy a roll of toilet paper.

Dueling exchange rates are a common issue for developing countries that have an official premium rate set by the government, often for political purposes that don't reflect economic realities and are therefore often ignored in the marketplace.

For comparison's sake, the black market premium for the Syrian pound is "only" 144.3 percent of the official rate, he said.

If you pick up that roll of toilet paper in a shop catering to foreigners, tourists or the relatively affluent elite in the capital, it would probably have a price tag in the 200-400 won range, or $2-4.

Typical Pyongyang residents, meanwhile, are more likely to do their shopping at a place like the Kwangbok Department Store, which does take won and therefore uses an entirely different pricing system.

The importance of the unofficial exchange rate has grown tremendously since the 1990s, when the collapse of the Soviet bloc and natural disasters that devastated harvests took North Korea's economy to the verge of collapse.

The result was the rise of an unofficial, but by now well-established, capitalist-style market, where prices are competitive and determined by supply and demand.