Chapter 910 Boss, I Can't Stand It Anymore

What is the concept of 1,000% overnight interest rate? This extreme method has basically abolished overnight interest rate. No one can afford to pay the interest, drug dealers don't even have such a high profit!

The announcement of this policy also means that the 5 billion US dollars of foreign exchange reserves used by the Thai government is not enough, and the reverse operation will not be able to play against Soros.

Of course, once this policy came out, Soros could no longer sell Thai baht, because he couldn't afford to borrow it.

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

"Boss, is the Thai government crazy? The consequences of their actions will have a major impact on their financial industry!" Zhu Ken Miller panicked. How could he suppress the exchange rate of the Thai baht without selling it? ?

Relying on the baht sold by foreign companies and foreign banks is useless at all.

Soros said calmly: "Don't worry, as you said, this method is a bad strategy that hurts both sides. It just shows that the foreign exchange reserves of the Thai government are not enough!"

If the overnight interest rate is raised so much, financial institutions will inevitably be greatly affected, and those financial institutions will have to maintain a large amount of excess reserves to deal with withdrawals, liquidation, exchange and other businesses.

Overnight, there are also one-day, seven-day, and one-month lending methods. The Thai government must not dare to raise all these lending rates to more than 1,000 percent!

"But their foreign exchange reserves are insufficient, and we don't have many dollars. Now we can only borrow for more than seven days, and the interest rate for one day has also been raised to 1,000 percent, and the interest for one week is not a small amount. Our costs have risen sharply!" Zhuken Miller said anxiously.

Soros supported his head in one hand and held a cigar in the other. He had to think carefully about how to deal with it. Should he stand up, or admit defeat, quit temporarily, and wait for him to raise all the funds, and then make a comeback!

"Miller, call all three of them back, let's discuss how to deal with it next."

Although Soros is arbitrary, he still trusts the four gold medal managers under his opponent. Important things will be discussed with them. For example, the act of coming to Asia to crack down on the currencies of multiple countries is agreed by everyone.

...

"Soros is going to die, they don't have baht to sell, and they will lose money." Fu Guangzheng laughed.

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

"Guangzheng,

The overnight interest rate and the one-day interest rate have increased so much, but the seven-day interest rate has not been adjusted. Soros and the others can completely borrow the seven-day interest rate and continue to sell Thai baht. "Professor Liang explained.

"Seven days? For seven days, their cost will increase a lot, let alone, and the risk will become greater."

"But you haven't thought about how much money they will lose if they have invested so much before? What's more, when they established the forward foreign exchange contract, it was 24:1. If these contracts were delivered, they would The loss is not much. But if the baht continues to depreciate, they can make money!" Feng Yu reminded.

Soros and the others have established a forward contract of at least 15 billion U.S. dollars. Even if the Thai baht returns to a 25:1 exchange rate, they will still have a profit of 600 million U.S. dollars. As long as they don't lose more than 600 million U.S. dollars when selling Thai baht, they won't lose money.

But according to Feng Yu's estimation, Soros and the others crazily sold Thai baht in the early stage, and lost at least 800 million U.S. dollars, mainly due to interest and depreciation losses.

In other words, if the Thai baht really returns to the 25:1 exchange rate, Soros and the others will lose this time!

Although Thailand's economy was disturbed and a sum of money was tied up, Soros would be ashamed.

In fact, the funds originally prepared by Soros are definitely enough, and it is enough without Feng Yu. But Soros is too greedy. He firmly believes that the devaluation of a country's currency will cause a chain reaction, so he has already established positions in many East Asian countries.

Although there are leverage factors, and they are all forward contracts, a margin must be set aside to prevent a sudden increase in the currency of a certain country and their contracts are all liquidated.

In addition, they built too many positions. Although there are leverage factors, they actually invested a lot. Originally they thought that with the participation of Feng Yu and Kirilenko's funds, it was enough, but they didn't expect Feng Yu to withdraw suddenly!

Speaking of which, Soros' current dilemma has nothing to do with Feng Yu.

"So, do you think Soros and the others will win?" Fu Guangzheng asked with a frown.

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

"Why?"

"The main reason is that Soros's funds are insufficient. Originally they thought that with my joining, it would be enough, but now I withdrew and flashed him. It's not that he doesn't have funds, but he won't be transferred so soon !"

"But didn't you say that the Thai government's funds are almost spent?" Feng Yu obviously said this to him a few minutes ago.

"That's right, the funds of the Thai government are indeed not enough. Their foreign exchange reserves have been greatly reduced this year. This is also a major mistake. Think about it, if your business has problems and you need capital turnover, what will you do? What to do?" Feng Yu reminded.

"Go borrow. You mean, they will find a way to borrow money?" Fu Guangzheng suddenly realized. In that case, the Thai government will have new funds injected. As long as you buy a lot of Thai baht, the exchange rate of Thai baht will definitely be pulled back.

Thailand itself owes a lot of money, so I don’t worry if there are too many lice, and I don’t care if I owe more. Those countries that have lent money to the Thai government do not want to see problems in Thailand.

Once Thailand's economy collapses, the money borrowed before will not be recovered! In other words, 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 with approval in his eyes. This student, maybe he will be the best, no, he will definitely be the best.

Economy can never be separated from politics. Many people can't see this, but Feng Yu sees it very clearly. In addition, Feng Yu is so young, it is inevitable to surpass him!

"Guangzheng, you still have a lot to learn." Professor Liang said with a smile.

"Professor Liang, I will study hard and I will definitely not disappoint you." Fu Guangzheng promised.

Feng Yu looked at Fu Guangzheng curiously, and then at Professor Liang. What does this mean? It seems that Fu Guangzheng has become Professor Liang's student? The relationship between these two is a bit messy.

...

Zhuken Miller hurried into Soros' office and shouted, "Boss, I can't stand it anymore!"