Extraordinary Genius

What is the concept of one thousand overnight interest breaks, an extreme means that has basically abolished overnight interest breaks? No one can afford this interest, no drug dealer has such a high profit!

The announcement of this policy also represents that the US $5 billion in foreign exchange reserves used by the Thai government ~ is not enough, reverse operation, can't play Soros.

Of course, as soon as this policy comes out, Soros can't keep selling THB, he can't afford it.

The important means of suppressing the Thai baht exchange rate was abolished.

“Boss, is the Thai government crazy? The consequences of doing so will have a huge impact on their financial industry!” Jukan? Miller is a little panicked, how can you suppress the Thai baht exchange rate without selling it?

Relying on the baht sold by foreigners and foreign-funded banks is useless.

Soros said calmly: "Don't worry, you said, this method is a double victory, which just shows that the Thai government ~ government's foreign exchange reserves are not enough! ”

By raising interest rates overnight, financial institutions will inevitably be significantly affected, and those institutions will have to maintain large excess reserves to cope with withdrawal, liquidation, exchange and other operations.

Overnight interest-bearing and more than one day, seven days, one month and other borrowing methods, the Thai government ~ will certainly not dare to increase the interest rate on all of these borrowings to more than one thousand percent!

“But they don't have enough foreign exchange reserves, and we don't have enough dollars. Now we can only borrow for more than seven days. The interest rate of one day has also risen to one thousand, and the interest rate of one week is not a small amount. Our cost has risen dramatically!” Jukan? Miller Expressway.

Soros had his head in his hand and a cigar in his hand, and he had to think carefully about what he was going to do. Stiff, or admit to failing, quit temporarily, wait for him to raise all the money before rolling back!

“Miller, call them all back, let's talk about what to do next. ”

Though arbitrary, Soros trusted these four gold medal managers. They will be consulted on important matters, such as the fight against multinational currencies this time in Asia, which we all agree on.

……

“Soros is doomed, they don't have THB to sell, they have to pay for it.” Pai Guangzheng laughed.

Feng Yu and Professor Liang looked at each other and shook their heads.

“Kwangzheng, the interest rates on overnight and one-day breaks have increased so much, but the seven-day breaks have not been adjusted, Soros they can totally borrow for seven days and then continue selling THB.” Professor Liang explained.

“Seven days? In seven days, their costs will be much higher, and the risks will be even greater. ”

“But you never thought they'd put so much money into it, how much money would they lose if they quit? Besides, when they first established forward foreign exchange contracts, they were 24: 1, and if they were to close these contracts, they would lose very little. But if the baht continues to depreciate, they can make money!” Feng Yu cautioned.

Soros, they have a minimum $15 billion forward contract, and even if the baht returns to the 25: 1 exchange rate, they have a profit of $600 million. As long as they don't lose more than $600 million when they sell the baht ahead, they won't lose.

But according to Feng Yu's estimation, Soros had lost at least $800 million, mainly interest and devaluation, when they sold THB frantically in the previous period.

That is, if the baht does return to the 25: 1 exchange rate, Soros, they will lose this time!

Though it disrupted the Thai economy, with a fortune, Soros was embarrassed.

In fact, the funds originally prepared by Soros were absolutely sufficient, even without Feng Yu's participation. But Soros was so greedy that he firmly believed that a country's currency would be devalued, with a chain reaction, that positions had been built in many countries in East Asia.

While there are leverage factors and these are forward contracts, a margin is also set aside to prevent a sudden increase in a country's currency, and those contracts are closed.

Plus, they build too many positions, and although there are leverage factors, there's a lot of real investment. They thought that Feng Yu and Kirilenko had enough money to participate. How do they know that Feng Yu suddenly left?

Speaking of which, Soros is now in the situation of Vivalley, it has nothing to do with Feng Yu.

“So you keep an eye on Soros and they'll win?” Fu Guang was frowning and asked.

“No, quite the contrary, I think Soros will lose at this point and will retreat temporarily.” Feng Yu laughed, picked up the coffee on the table and took a sip.

“Why?”

“The main reason is that Soros is underfunded. They thought I was in, enough to use, but now I'm out, flash him. He's not without money, but he won't pull it over so soon! ”

“But didn't you say that the Thai government ~ spends the same amount of money?” Feng Yu told him that a few minutes ago.

“Yes, the Thai government's funding, it's not enough, their foreign exchange reserves, have begun to decline dramatically this year, which is also a major mistake. Think about it. What would you do if something went wrong with your business and you needed a capital turnover?” Feng Yu cautioned.

“Go borrow it. You mean, they'll find a way to borrow money?” Fu Guang is suddenly enlightening. In that case, the Thai government ~ government will have a new infusion of funds, as long as you buy more Thai baht, the exchange rate of Thai baht will be pulled back.

Thailand itself owes a lot of money, more lice, and doesn't care if it owes more. Countries that lend money to the Thai government ~ don't want to see Thailand go wrong.

Once the Thai economy collapses, the money borrowed earlier will not be recovered! This means that some countries must also lend money to Thailand or help raise the baht to ensure Thailand's economic stability and financial market stability!

Professor Liang looked at Feng Yu and his eyes were full of praises. This student, may be blue out of blue, no, must be blue out of blue.

The economy can never be separated from politics ~, many people can't see this, and Feng Yu sees it clearly. Plus Feng Yu is so young, more than him, is inevitable!

“Guangzheng, you have a lot to learn.” Professor Liang smiled.

“Professor Liang, I will study carefully and I will certainly not disappoint you.” Paying the light is guaranteed.

Feng Yu was curious to see Pai Guangzheng, and looked at Professor Liang again. How can you hear this, as if Pai Guangzheng had become a student of Professor Liang? The relationship between the two is a little messy.

……

Juken Miller broke into Soros' office in a hurry and shouted, “Boss, I can't hold it! ”