Extraordinary Genius

905. Chapter 905 Boss, can’t stand it

Overnight interest rate 1% thousand what is the concept, this extreme means, basically has been overnight interest rate to abolish. No one will be able to afford this interest, and the dealers are not so profitable!

The announcement of this policy also means that the five One billion dollar foreign exchange reserves used by the Thailand Government are not enough. Reverse operation, playing Soros.

Of course, when this policy comes out, Soros can’t continue to sell the Thai baht, and he can’t afford it.

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

“Boss, Thailand Government is crazy? The consequences of doing so will have a major impact on their financial industry!” Juken Miller was a little panicked. Without Thai baht selling, how can I suppress the exchange rate of Thai baht?

It is useless to rely on the Thai baht sold by foreign companies and foreign banks.

Soros said calmly: “Don’t worry, you said, this means is the best policy for both losses. It just shows that the foreign exchange reserves of Thailand Government are not enough!”

If the overnight interest rate is raised to such a large extent, financial institutions will inevitably be greatly affected. Those financial institutions will have to maintain a large excess of reserves to deal with withdrawals, liquidation, exchanges and other services.

Overnight interest rates, and one day, seven days, one month and other lending methods, Thailand Government certainly can not raise the interest rate of these borrowings to 1% more than 1,000!

“But their foreign exchange reserves are not enough, and our US dollar is not much. Now we can only borrow more than seven days, and the daily interest rate is also increased to 1% thousand, and the interest for one week is not a small amount. Our The cost has risen sharply!” Juken Miller hurried.

Soros holds his head in one hand and a cigar in his hand. He has to think carefully about how to deal with it. Is it stiff, or admit defeat, temporarily withdraw, wait for him to raise all the funds, and then come back!

“Miller, call them all back, let’s talk about it, how to deal with it.”

Although Soros is arbitrarily, the opponents of the four gold medal Managers are still very trusting. The important things will be discussed with them. For example, the act of hitting multinational currencies in Asia this time is everyone’s agreement.

……

“Soros is going to die, they don’t have Thai baht sold off, they have to lose money.” Fu Guangzheng said while laughing loudly.

Feng Yu glanced at Professor Liang and shook his head.

“Guangzheng, overnight interest rate and one-day interest rate increase so much, but the seven-day interest rate has not been adjusted, Soros they can borrow for seven days, and then continue to sell Thai baht.” Professor Liang explained.

“Seven days? Seven days, if their costs are much higher, they will not be said, and the risks will become even bigger.”

“But you didn’t think about it. They invested so much before. If they quit, how much will they lose? What’s more, when they built the forward foreign exchange contract, they were 24: 1. If they were delivered, they would There is not much loss, but if Thai baht continues to depreciate, they can make money!” Feng Yu reminded.

Soros, they have established a forward contract of at least one hundred and one Dollar dollars. Even if Thai baht returns to the 25:1 exchange rate, they also have a profit of 600 million US dollars. As long as they don’t lose more than $600 million in the sale of Thai baht, they won’t lose.

However, according to Feng Yu’s estimate, Soros had a crazy sell-off of Thai baht in the early stage, and at least had lost more than $800 million, mainly due to the loss of interest and depreciation.

In other words, if Thai baht really returns to the exchange rate of 25:1, Soros will be defeated this time!

Although it has stirred up the economy of Thailand and made a fortune, Soros can be a shame.

In fact, the funds originally prepared by Soros are absolutely sufficient. It is enough without Feng Yu to join. However, Soros is too greedy. He firmly believes that a country’s currency depreciation will form a chain reaction, so in many countries in East Asia, it has already established positions.

Although there are financial leverage factors, and they are long-term contracts, they have to reserve a margin to prevent a country’s currency from suddenly growing, and their contracts are closed.

In addition, they have too many positions, although there are factors of financial leverage, they can actually invest a lot. Originally, they thought that there was Feng Yu and Kirilenko participating in the fund. It was enough to use it. I know that Feng Yu suddenly pulled back and retired!

Speaking of it, Soros is now in a dilemma, and it doesn’t matter to Feng Yu.

“So, you are optimistic about Soros, will they win?” Fu Guangzheng asked with a frown.

“No, on the contrary, I think Soros will be defeated at this time and will temporarily retreat.” Feng Yu smiled and took the coffee on the table and took a sip.

“why?”

“The main reason is that Soros’s funds are insufficient. Originally they thought that I had enough to join, but now I quit, and flashed him. He is not without funds, but will not be transferred so soon! ”

“But don’t you say that the funding of the Thailand Government is almost the same?” This sentence is clearly Feng Yu told him a few minutes ago.

“Yes, the funding of the Thailand Government is really not enough. Their foreign exchange reserves have started to drop sharply this year. This is also a major mistake. Think about it, if you have a problem with your business and need capital turnover, what do you do? Feng Yu reminded.

“Let’s borrow. You mean, they will find a way to borrow?” Fu Guangzheng suddenly realized. In that case, the Thailand Government has injected new funds. As long as the purchase of Thai baht, the exchange rate of Thai baht will inevitably be pulled back.

Thailand itself owes a lot of money, and the scorpion is not too much, nor does it care more. Those countries that lend money to the Thailand Government don’t want to look at Thailand’s problems.

Once Thailand’s economy has collapsed, the money that was borrowed before will not be returned! In other words, some countries must also lend money to Thailand, or help to raise Thai baht, to ensure Thailand’s economic stability, financial market stability!

Professor Liang looked at Feng Yu and looked at him with a look of approval. This student may be blue, no, it will definitely be blue.

The economy can never be separated from the government. Many people can’t see this, and Feng Yu sees it very clearly. Plus Feng Yu is so young, beyond him, it is inevitable!

“Guangzheng, there are still a lot of places to learn.” Professor Liang said with a smile.

“Professor Liang, I will study hard and will definitely not let you down.” Fu Guangzheng promised.

Feng Yu was very curious to look at Fu Guangzheng and looked at Professor Liang. How did he listen to this? It seems that Fu Guangzheng has become a student of Professor Liang? The relationship between the two people is a bit messy.

……

Juken Miller hurried into Soros’s office, yelled in his mouth: “Boss, I can’t help it!”