Forex Basics
What is the Forex market?
The global market where currencies are traded.
In our presentation why was Vietnam chosen for comparison?
It is one of the fastest-growing economies in Asia.
Where is Mongolia’s foreign investment mainly concentrated?
In mining.
What should Mongolia diversify beyond?
Mining products.
Which country has a larger and more liquid Forex market?
Vietnam
What is Forex also known as?
Foreign Exchange Market.
What type of investment does Vietnam attract?
Foreign direct investment, or FDI.
What sector does Mongolia’s economy depend heavily on?
Mining
What type of investment should Mongolia attract more of?
Foreign investment
Which country has more diversified exports?
Vietnam
What is traded in the Forex market?
Currencies.
What are Vietnam’s main economic activities
Manufacturing, exports, services, and agriculture.
What is Mongolia’s nominal GDP in 2025?
25 billion USD.
What reserves should Mongolia increase?
Foreign exchange reserves.
Which country’s foreign currency earnings mainly come from mineral exports?
Mongolia
Why do exchange rates change?
Because of supply and demand.
What are Vietnam’s key exports?
Electronics, textiles, footwear, and machinery
What are Mongolia’s key exports?
Coal, copper, gold, and cashmere.
What can economic diversification improve?
Currency stability and long-term growth.
Why is Mongolia’s exchange rate more vulnerable than Vietnam’s?
Because Mongolia depends heavily on mining exports
Why is Forex important for international trade?
It allows businesses and countries to exchange currencies when importing and exporting goods and services
Why is Vietnam’s foreign currency inflow more stable?
Because it earns foreign currency from different industries.
Why can Mongolia’s exchange rate be more volatile?
Because it depends heavily on commodity prices.
What is the main lesson Mongolia can learn from Vietnam’s Forex market development?
Mongolia should diversify its economy and reduce dependence on mining to improve currency stability and long-term growth.
Why does Vietnam have better currency stability compared to Mongolia?
Because Vietnam has diversified exports and stable foreign currency inflows