The world’s worst performing currency right now is Mongolia’s

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http://www.bbc.com/news/business-37103608

Even Genghis Khan himself might find it hard to conquer this battle.

Mongolia’s currency is on its longest losing streak on record as the government grapples to contain an economic crisis.

Back in 2011, a mining boom helped make it the world’s fastest-growing economy with a gross domestic product of around 17.5%.

But the tugrik lost about 78% of its value this month, making it the world’s worst-performing currency, says Bloomberg data.

It’s been a rapid descent from grace for the central Asian nation, which neighbours China and Russia.

The landlocked country has substantial untapped reserves of valuable minerals like gold, copper and coal.

But then commodity prices collapsed. And so did demand from China, which buys 90% of Mongolia’s exports.

The government has since admitted that the country is “in a deep state of economic crisis”.

Finance Minister Choijilsuren Battogtokh said in a nationally televised address last week that they weren’t able to afford to pay civil servants or the military.

Making matters worse has been the government’s inconsistent approach to investment laws and mining agreements, causing many foreign firms to rush for the exit.

Foreign direct investment in Mongolia plummeted by 85% since 2011 to the first quarter of last year, according to the US State Department.

The populist Mongolian People’s Party won power in elections earlier this year after the public lost confidence in the long-ruling Democratic Party over its mishandling of the economy.

However it looks like a hard road ahead for Prime Minister Erdenebat Jargaltulgameans.

Due to its cash shortage, Mongolia has borrowed massively and now owes dinosaur-sized interest payments of a debt load of nearly $23bn.

This has fuelled speculation that Mongolia could face a sovereign default or need a bailout.

Funnily enough, a delegation from the International Monetary Fund arrived in the capital Ulaanbaatar today.

———-

i am selling all my tugriks asap!

the pertinent lines from this article come at the end..i have highlighted it..

“funnily enough”..the vultures are circling..look out mongolia..

401

~ by seeker401 on August 23, 2016.

One Response to “The world’s worst performing currency right now is Mongolia’s”

  1. And commodity prices collapsed because globalism & outsourcing destroyed industry & jobs in two of the most active & dynamic markets in the world…the U.S. & Europe.
    Mongolia is simply experiencing what the rest of the world is experiencing, but since its chief source of income is the exportation of natural resources for the industrial sector, it has little diversity in its economy to fall back on.
    And where is that “emerging market” we kept hearing about? Supposedly being created in the countries where all the jobs fled to, from the west?
    Well, there wouldn’t be much sense in relocating your industries to slave-wage regions if you started paying those workers like you used to pat western workers, would there? If you did that, you may as well keep the jobs in the west & avoid the shipping costs.
    Hence the lack of consumers, lack of sales, lack of industrial orders, lack of a need for raw materials…all because you replaced workers who were GOOD consumers with workers that can’t afford to consume much.

    And this predicated the need for “quantitative easing” (forever) & artificially low interest rates (forever) which will destroy the banks & keep governments all over the world in a state of ever-growing debt.
    All to keep stock markets active while their sales are in the tank.

    It’s not rocket surgery…and it was all predicted WAAAY back in the mid 90’s, when the GATT deal was being formulated & kept a relative secret from the masses…

    James Goldsmith on GATT (good)

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