The strong dollar has led to a significant decline in the value of the Mongolian soum, causing importer demand to plummet. Exporters are struggling to compete with foreign goods, which are now cheaper due to the appreciation of the dollar.
This has resulted in a reduction in imports, as importers are unable to afford the higher prices of foreign goods. The strong dollar has also led to a decrease in demand for Mongolian products, further exacerbating the economic downturn.
Citations:
[1] https://www.gsam.com/content/gsam/uk/en/institutions/market-insights/gsam-insights/perspectives/2022/cause-and-FX_how-the-strong-dollar-complicates-policy.html
[2] https://www.marketplace.org/2022/10/04/for-importers-taking-advantage-of-the-strong-dollar-hasnt-been-easy/
[3] https://sgp.fas.org/crs/misc/IF12319.pdf
[4] https://www.dw.com/en/strong-dollar-effect-on-export-import/a-63560615
[5] https://econofact.org/who-is-responsible-for-the-strong-dollar-and-what-can-be-done