Chapter 1200: The whole warehouse is hard at work!
(I was banned from QQ again and said I was GHS. It was really unfair. Am I that kind of person?)
(1200 was sent wrongly, please make up)
On the top floor of the building, which was completely controlled by the security company, Wang Yaozu and Guan Tomohiro sat across from each other.
"At this time, most of the chips have been snatched away by Soros and other international investment institutions. Now that they are stepping in, even if they throw in the more than 5 billion US dollars in their hands, they will only be able to grab some leftovers and not make much money.
If you don’t tell me, you will expose yourself to these capital giants.”
"And someone will definitely be looking at us. Our little arms and legs will probably be eaten clean by these giant crocodiles." Guan Tomohiro said with a serious face.
After discussing for a while, Guan Tomohiro finally decided to follow what Brother Yao said before and target the Malaysian ringgit and make arrangements in advance.
Throw down all your chips and go straight to stud!
As long as this secret plan is successful in advance, you can eat a lot of meat!
By then, those international speculative institutions will have no choice but to watch helplessly. By the time it is over, the funds in their hands will have been able to leverage a corner of the market, and they will no longer be small players who can be manipulated.
, only then can you be qualified to sit on the dining table with those international capital giants.
Although he will be ranked last, at least he will not be abandoned easily.
On February 9, Soros and others began to frantically sell the Thai baht cash in their hands. The real-time exchange rate of the Thai baht in the spot market fluctuated significantly, which instantly triggered turmoil in Thailand's financial market. The exchange rate of the Thai baht against the US dollar plummeted, and a large number of investors invested in the Thai baht.
Liquidated and lost all money.
The Thai financial market suddenly fell into unprecedented panic. Retail investors and small and medium-sized investors had their confidence frustrated. In order to avoid liquidation, they had no choice but to close their positions in advance. This further aggravated the panic in the market and caused the Thai baht to fall further.
After that, retail investors and small and medium-sized investors joined in short selling the Thai baht in order to make up for their losses, which further accelerated the situation's decline into the abyss.
The abnormal drop in the Thai baht's exchange rate alerted the Thai government immediately, and they urgently held a meeting with the leaders of Southeast Asian countries. The countries responded quickly and made a unified resolution in just three days.
On February 14, a meeting of central banks in Southeast Asia unanimously agreed to jointly carry out multilateral or bilateral intervention when encountering currency crises. At the same time, Thailand raised interest rates and once again emphasized that the exchange rate would not depreciate.
In order to stabilize the exchange rate, the Bank of Thailand invested US$2 billion in the foreign exchange market at one time. This barely stabilized the situation and fixed the exchange rate at 26.18:1. However, this is still the lowest point in 10 years and the situation is still unstable.
Optimistic, because the central bank’s foreign exchange liabilities have matured. But Soros and others have also jumped from behind the scenes to the front.
The day after the situation stabilized, Soros's Quantum Fund jumped from behind the scenes to the front, held a press conference on Wall Street, and publicly released the "Short Sell Report on the Thai Baht."
The 100-page short-selling report details Thailand’s economic changes and loopholes in economic policies since 1985.
The report pointed out that from 1993 to 1996, Thailand's real estate prices rose by nearly 400%, and the SET index also reached a record high of 1410.33 in January 1996. Since then, real estate and the stock market have turned into decline, which has brought losses to bank assets.
Huge pressure.
In June 1996, the non-performing assets of Thai commercial banks had reached 1.78 trillion baht, and the non-performing asset rate was as high as 35.8%.
Since 1995, the U.S. dollar has entered an appreciation channel. Since the Thai baht is pegged to the U.S. dollar, the appreciation of the U.S. dollar has caused the Thai baht exchange rate to continue to rise, causing Thailand's exports to suffer and economic growth to slow down. In 1995, the GDP growth rate was 8.12%, while in 1996, Thailand's GDP growth rate was 8.12%.
5.65%, economic growth began to decline overall.
The bad news that had been accumulated for many years was suddenly exposed by the Quantum Fund, which immediately caused an uproar throughout the world. All speculators were eyeing the Thai baht.
In response to the culling of Wall Street wolves led by Soros, the Thai government issued an order on March 4 after a round of emergency consultations.
The Central Bank of Thailand requires nine finance companies and one housing loan company that have liquidity problems to increase their capital by 8.25 billion baht ($317 million), and requires banks and other financial institutions to increase the ratio of bad debt provisions from 100% to 115%.
% -120%, which increased the financial system's reserves by 50 billion baht ($1.94 billion).
The Bank of Thailand's move was intended to strengthen the stability of the financial system and enhance people's confidence in the financial market. However, not only did it fail to have the desired stabilizing effect, it unexpectedly deepened people's distrust of the banking system. Runs began to occur and the stock market plummeted.
.
On March 5, international speculators such as Soros took action again and exposed 10 financial companies with liquidity crises. The stocks of banks and financial companies plummeted, and the foreign exchange market also experienced downward pressure again. The Thai government took action again and invested in
Tens of billions of dollars in foreign exchange stabilized the stock and foreign exchange markets, and the two markets gradually stopped the downward pressure.
Just when Southeast Asian officials thought that these international financial giants had retreated after having enough to eat, Soros took action for the second time on May 12.
Soros and other international speculators took advantage of this two-month window to quietly establish positions in spot and forward foreign exchange transactions through foreign banks operating offshore businesses, and then borrowed Thai baht from local Thai banks to trade in spot and forward foreign exchange transactions.
In the form of large-scale sales of Thai baht in the futures market and short selling of the Thai baht, the spot exchange rate of the Thai baht repeatedly exceeded the exchange rate floating limit stipulated by the Central Bank of Thailand, causing strong panic in the market. The Thai baht once depreciated to 27:1 against the US dollar.
Faced with the impact, the Central Bank of Thailand took urgent action to unite Southeast Asian countries. Countries were unwilling to see the Thai baht really collapse. Once Thailand collapsed, other countries with close economic ties would also be greatly affected. At this time, the whole world had already seen
We now understand the purpose of Soros and other international financial giants.
Under the mediation of the Thai government, Southeast Asian countries extended a helping hand and launched counterattacks against Soros and others from three aspects.
1: Through the member states of the "East Asia Central Bank Presidents Conference", they jointly intervened in the foreign exchange market with Singapore and invested US$12 billion to maintain the exchange rate.
Two: Use an administrative order to prohibit domestic financial institutions from lending Thai baht to foreign countries, and then significantly increase the overnight lending rate, from 10% to 1,000-1,500%.
Third, once again take out a large sum of foreign exchange and put it into the market to stabilize the exchange rate.
After a fierce battle, Thailand finally maintained the baht at 25.2 baht per US dollar on May 20.
In this case, Soros lost US$300 million.
This series of financial wars has stunned Wang Yaozu, who has been following Guan Tomohiro and paying attention to the situation in Thailand recently. Finance is really a war without smoke.
In a world that ordinary people are completely unaware of, although there was no smoke in this war, it caused the Thai government to shed blood and suffered heavy losses, and it almost collapsed completely.
"Fortunately, we did not join this financial war. Otherwise, we may not be completely trapped. There are no winners in this war." Guan Tomohiro finally let out a long breath.
"Hey, what do you mean?" Wang Yaozu asked with some confusion: "Didn't he say that Soros only lost US$300 million?"
"That's not what you said." Guan Tomohiro shook his head and explained: "The Thai government invested a large amount of US dollars to absorb the Thai baht, but the bullets have been used up, and the chips are locked up and cannot be released in the short term, while Soros only lost 3
100 million because he used the method of hedge funds to reduce risks at this time, and if we want to make a lot of money, we can only rush and buy directly with full positions, and the Thai government will set the overnight lending rate
, soared from 10% to 1000-1500%, an increase of 150 times. The interest rate alone can make us liquidate our position, and we will end up losing everything."
"Hiss!!!" Wang Yaozu gasped. If more than 5 billion US dollars were wasted, he might go bankrupt!?
The financial market is indeed dangerous. Damn it, this is based on foresight. If a financial expert like Guan Youbo hadn't helped the operation but rushed in blindly by himself, I'm afraid he would have died without foresight.
The second battle between the Thai government and Soros and other international financial giants has ended, and the financial market has fallen into a relatively stable period of oscillation. Both sides have begun to make final accumulation of strength and prepare for the last financial market showdown. During this period,
Guan Tomohiro also completed the layout of Malaysian Ringgit.
And Wang Yaozu also withdrew his eyes from the financial market and looked at Hong Kong Island again.