From The Daily Reckoning…
01/05/11 Buenos Aires, Argentina – We begin today’s reckoning with a trivia question: how many möngös are there in a tugrik?
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If you guessed 100, congratulations! If you didn’t know, don’t worry. The Mongolians probably don’t care either way. The tugrik, their national currency, may not be much discussed outside the world’s strangest-sounding capital city, Ulaanbaatar, but it was still the world’s best performing currency of 2010. Well, the best paper currency, anyway.
The tugrik rallied 15% against the greenback between New Year’s Days, narrowly pipping the Aussie dollar, which advanced a none-too-shabby 13% on the world’s “preferred” currency, for top spot. The Japanese yen came in at number three.
So what do 2010’s two leading coinages have in common that lends them such purchasing power gusto? Well, for one, they are both not the US dollar. Neither are they the euro, widely considered to have turned in the worst performance of the major currencies for the last year, having lost considerable ground against all its fiat contemporaries – the USD, JPY, GBP, CHF, AUD, and CAD.