The steep depreciation of the currency in recent months has raised concerns over Mongolia's economy. The depreciation of the tugrug has been common in winters, especially at the turn of a year, when foreign currencies flow out of Mongolia, as foreign investors stop investing and bring their money back home. This year's currency fluctuations, however, is much more dramatic than previous years.

Mongolia's economy and foreign direct investment (FDI) are highly dependent on the mining sector. The risk of a global economic downturn has raised concerns over the plummet of prices of such commodities as copper, iron ore and coal; essential to the country's economic growth. The fluctuations to the tugrug have also comprised the central bank's efforts to fight inflation.

D. Batjargal, director of the Institute of Finance and Economics, told local media that the appreciation of the dollar has increased the prices of imported goods, which in turns has pushed up the prices of consumer goods. Illegal currency dealers were also responsible for the dramatic tugrug depreciation, he said.