Chapter 1491 Dangerous Exchange Rate

Youde was very surprised and emotional at Yin Jun's move.

There are also some touches.

He knew that Yin Jun's heart was devoted to mainland China, but usually Yin Jun was measured in his behavior and actions. He also admired this young man very much.

So Youde didn't specifically target Yin Jun.

Now he found that he was rewarded for this.

Yin Jun not only helped him stabilize the chaotic situation in Hong Kong, but also stood up at this most dangerous time and told everyone to believe in the government and the Hong Kong dollar.

Yin Jun not only said that, he also invested heavily in substantively supporting the Hong Kong dollar.

Nothing shows Yin Jun’s support better than this!

This proves that Yin Jun is really desperately supporting Xiangjiang and not letting Xiangjiang's economy collapse.

The same is certainly true of Yoder.

As the governor of Xiangjiang, what he wants to do is to develop Xiangjiang well. If Xiangjiang is destroyed in his hands, it will be his shame.

This has nothing to do with how China and Britain negotiate, but his responsibility as a local official.

This sense of responsibility will never allow Yoder to hang around and get by.

So in addition to thanking Yin Jun for his generous action, he also made an exception and told Yin Jun that the Chief Secretary was ordering the Financial Secretary to formulate a new currency plan, and there would definitely be a good turnaround, and Yin Jun's hard work would not be in vain.

Yin Jun naturally responded politely.

No one knows better than him what policies Hong Kong will adopt to deal with this collapse of the Hong Kong dollar.

That is to lock in the exchange rate of the Hong Kong dollar.

The exchange rate between the Hong Kong dollar and the US dollar is fixed at 7.8:1!

Whenever people exchange Hong Kong dollars for U.S. dollars, the exchange rate is 7.8 Hong Kong dollars for one U.S. dollar, without any surprises.

The government guarantees it with fiscal revenue and credit. Unless Xiangjiang collapses, this exchange rate will always be effective.

As soon as this trick came out, the effect was immediate. The Hong Kong dollar surged within two or three days and returned to the normal price of 7.8 within a week.

Since then, this exchange rate has not changed for more than 30 years. Even during the 1997 financial crisis and the 2008 financial crisis, the value of the Hong Kong dollar has always been strong.

This also ensures that Xiangjiang's economy has continued to develop at a rapid pace in these years.

Therefore, now Yin Jun takes action, ostensibly to stand up for Xiangjiang, but in fact he is taking advantage.

Once your reputation is gained, after more than half a month or a month, you will receive benefits.

Now the Hong Kong dollar has almost plummeted by 10:1. If it returns to the fixed exchange rate of 7.8, how huge will be the income of about 28%?

The key is that in only about a month, you can make a profit of close to 30%, which is already a huge profit.

Therefore, the more others exchange U.S. dollars, the more Yin Jun will earn. If all two billion U.S. dollars are exchanged, then Yin Jun will make a net profit of 600 million U.S. dollars!

Calculated based on the exchange rate of 7.8, 600 million US dollars is more than 4 billion Hong Kong dollars!

Although the number of rich people in Xiangjiang has increased a lot in the past two years, after experiencing a series of stock market crashes, the fifth richest person in Xiangjiang does not even have such a large net worth!

It seems that making money is too easy, right?

It's not that simple at all.

Exchange rate is a very dangerous thing that ordinary people dare not touch.

Not to mention ordinary people, even a country, if you don't pay attention, you can be finished by it.

Take the U.S. dollar as an example. The Federal Reserve used it to set up a trap and wiped out all the countries in Latin America without even letting the U.S. warships and administrative means take action.

As we all know, from the 1970s to the 1980s, many second-tier countries in the world experienced a period of economic recovery and prosperity.

These countries include not only the Philippines, Japan, South Korea, Thailand, etc. in Asia, but also Argentina, Chile, Brazil, etc. in Latin America. All have experienced great economic development over a period of time.

But the good times did not last long.

The United States looked at it and said, no, what if your economy develops and threatens our status as the United States? What about our merchandise sales? Is America still our backyard?

So the Fed devised a plan.

Since 1971, the US dollar has been slowly depreciating in a planned way.

By 1979, the U.S. dollar had fallen by more than 27%.

But starting from this year, the exchange rate of the US dollar reversed and entered a period of rapid appreciation.

In the six years from 1979 to 1985, the dollar rose by as much as 54%!

In this way, the overall rise and fall of the US dollar exceeded 80%!

Think about it, such a high rise and fall in a currency would be such a big blow to some countries with foreign trade needs, especially economies that use US dollars as transaction settlement?

Therefore, all countries in Latin America were directly knocked down by this round of ups and downs, entering a financial recession that lasted for more than two decades, and their days were getting worse day by day.

Do you think this is the end?

wrong!

In the 21st century, life in Latin America has only become slightly better. The even larger financial tsunami in 2008 directly destroyed their economies once again, once again causing a devastating blow to the export trade of these countries, and the financial order was destroyed. The serious damage was once again brought back more than ten years ago.

If Yin Jun keeps holding U.S. dollars in his hand, he can earn about 20% in two years.

Although it is not as good as the 28% profit this month, it is still a long-term profit. Excluding the loan interest, you can still earn a lot.

Latin America is already in trouble, but the Federal Reserve is not resting there.

Because soon they will start harvesting Japan's wool.

After the Plaza Accord in 1985, the sharp appreciation of the yen directly destroyed Japan's 30 years of hard work.

When Japan collapsed, the Federal Reserve seemed to have withdrawn its hand, but its vicious dog, Wall Street, quietly took action again.

First, around 1990, Wall Street attacked the world's second largest economy, the United Kingdom.

Soros and others caused the pound to withdraw directly from the trading system, and since then handed over the world's trading currency power to the United States.

The U.S. dollar has been dominant ever since.

In 1997, just as it had done with Latin America more than a decade ago, it knocked all the four Asian little dragons and four little tigers to the ground, and they could never get up again.

So you see, just because of a change in the exchange rate, the Americans can start such a huge war, and it is more powerful than airplanes and cannons. I don’t know how many companies have been killed and how many families have been harmed.

Yin Jun is definitely not as smart as the people at the Federal Reserve and Wall Street.

Although he generally knew these things, he had no plans to get involved.

Those books say that those who can follow the Wall Street giants and bet with high leverage really don't understand the market.

Those people on Wall Street have worked hard for so long, and they are going to let you eat up the profits?

A slight movement, a fluctuation, and the so-called leverage of 20 to 30 times explodes. How can we still get to the end safely?

This is the main reason why he even refused to let his company go public.

Not to mention listing, even if it is not listed, the pressure he faces will not be too small.

Therefore, basing ourselves on the real economy and using the mainland market as the largest base is Yin Jun's best way to help Kirin Group withstand the pressure.

This time the currency exchange rate crisis was not controlled by Wall Street, but because of special setbacks under special circumstances. And most importantly, this time the Xiangjiang government was on Yin Jun's side, so Yin Jun dared to go there. Take action.

Just like that time in 1997, the mainland stood firmly on the side of Xiangjiang. Although both sides ended up in trouble with the Wall Street financial giants, their vitality was not damaged in the end, and most of Xiangjiang's financial achievements were preserved.

In fact, this Hong Kong exchange rate crisis is not just about the Hong Kong dollar.

Gold, physical gold, was also driven up in panic.

Starting in July, the price of gold, which had been rising, suddenly surged along with the plummeting Hong Kong dollar.

By the end of September, the price of gold has soared by 23%, and the appreciation is very obvious.

The number of people who buy gold is much less than the number of people who exchange it for U.S. dollars!

It stands to reason that in addition to holding US dollars, Yin Jun can also buy gold, buy low and sell high.

This is also another way to diversify investment risks.

Even if the fixed exchange rate of the Hong Kong dollar is 7.8, it is an inevitable necessity. In theory, you can still diversify your investment into more stable gold, giving yourself an escape route at any time.

But Yin Jun didn't do this, he didn't even think about it.

It’s not because the profit from speculating on gold is lower than the exchange rate.

But because Yin Jun has no reason.

The boy now holds 2 billion U.S. dollars in his hands. The reason is that most of the Kirin Group's income comes from overseas, and most of its expenditures are U.S. dollar trade, so it should have been holding U.S. dollars.

Under such circumstances, it is very reasonable for Yin Jun to spend 2 billion US dollars to support the Hong Kong dollar.

No one would doubt that Yin Jun did this on purpose, exchanging Hong Kong dollars for the U.S. dollar when the price was at its highest, thereby making a huge fortune.

But gold is different.

Unless you are prepared in advance, who can come up with hundreds of millions or even billions of dollars of gold in one go?

As long as Yin Jun can take it out, then others will definitely say, look, Yin Jun knew that such a day would come, so he deliberately tried to make money without telling us.

Yin Junke cannot bear this crime.

Therefore, Yin Jun would rather not make money from gold than touch this kind of investment.

Although making money is important, reputation is equally important, but even more important.

Just by exchanging US dollars, even if everyone saw that the Hong Kong dollar was stabilized and became a fixed exchange rate of 7.8, they would not think that Yin Jun was prepared.

As for Yin Jun making money, that's right!

The so-called good intentions pay off, right?

If you dare to take out U.S. dollars at this time and let the panicked people exchange them, you can also make a fortune!

Not only can you make a lot of money, but you can also earn fame, and you can also gain the admiration and admiration of the people. This kind of investment is the best! !