Things were as Feng Yu expected. The Thai government's foreign exchange reserves were insufficient, and some of them needed to be reserved to deal with other matters. So the Thai government discussed with the Nanyang government and asked the Nanyang government to issue Five billion dollars.
In addition to the US$5 billion invested by the Thai government before, and another US$2 billion invested, the total investment is US$12 billion. Suddenly, a new force of US$5 billion from Nanyang was added to absorb the Thai baht, and the Thai baht's exchange rate began to rise.
From 26.3:1 in the past two days, it immediately reached 26:1, and it is still improving.
The funds absorbing the baht suddenly increased so much, and Soros and the others had no baht to sell.
Soros was also a little panicked. How could this happen? Why did Nanyang suddenly join
Because Nanyang has a lot of trade with Thailand, and the relationship between the two countries, at least under this government, is still very good.
Another important reason is that Soros's establishment of forward foreign exchange contracts in Nanyang was also discovered by the Nanyang government.
When they saw it, they thought, good guy, Soros is planning to finish taking care of Thailand and come to take care of us. If you do it separately, we may not be able to handle you yet. But if you do it at the same time, don't blame us for being rude.
Nanyang has the same idea as Thailand, which is to hit Soros in pain all at once. To break Soros's will, Soros must know that it is not a few years ago now, and it will not be so easy to control the exchange rate of a country's currency. .
If it fails in Thailand, Soros's credibility will definitely be seriously affected, and he will no longer be able to lead the crowd in attacking a country's currency, especially in Nanyang.
They wanted Soros to retreat and be confident about it.
…
The Governor of the Bank of Thailand faced reporters with a solemn look on his face: "We are fighting to defend the Thai baht and make those speculators lose their money!"
It is self-evident who the speculators are.
The Governor of the Bank of Thailand instantly became the patron saint of many Thai people. With the use of US$7 billion in foreign exchange and the help of US$5 billion provided by Nanyang, the price of the Thai baht immediately began to rise.
Correspondingly, the stock market has also begun to rebound, and everything seems to be moving in a good direction.
But Feng Yu firmly believes that Thailand will lose!
First of all, the Thai government's foreign exchange reserves are still insufficient, with a total of more than 20 billion US dollars. This time Nanyang intervened, and Soros was not fully prepared, and there was still a lot of funds that had not been allocated.
Furthermore, Feng Yu did not intervene at this time. If Feng Yu also intervened, then all the foreign exchange reserves of the Thai government must be used to achieve some stability.
And there is another phenomenon that lets Feng Yu know that the Thai government has no other means and they have to spend a lot of money to stabilize domestic housing prices.
Seeing that a financial crisis is about to break out, the stock market has begun to fall, but housing prices are still rising!
To put it bluntly, the Thai government does not dare to let the real estate collapse. They believe that once real estate prices plummet, it will repeat the tragedy of the island country.
So while they are trying to support the stock market, they are fighting Soros in the foreign exchange market. At the same time, they have to stabilize the domestic real estate market. Finally, they have to stabilize the foreign businessmen and prevent them from withdrawing their investment!
If it is one thing, or even two things, Feng Yu believes that the Thai government can handle it. But when these things happen at the same time, it becomes impossible to take care of both.
Moreover, Feng Yu judged that compared to the fall of the Thai baht, the Thai government was more worried about the real estate collapse, so more funds must be spent on real estate.
But now, it seems that the Thai government has really won. The Thai baht exchange rate has risen sharply. It has only been 25.7:1 for a long time. It seems that it will return to 25:1 tomorrow.
At this exchange rate, the Thai government and the Nanyang government should also run out of funds. They can also stabilize at this exchange rate and return to 24:1. Feng Yu thinks it is impossible!
…
Soros watched the Thai baht's exchange rate continue to rise, but he was helpless.
It seemed that this time, he was defeated. If the Thai baht returns to the exchange rate of 25:1, he will lose at least US$400 million even if he delivers the foreign exchange futures contract. Moreover, the stock market has begun to recover, the stock index has rebounded, and his stock index futures profits have become lower and lower.
The pincer offensive in the stock market and foreign exchange is his method. If it goes well, he can make money in both ways. But now, he is a little overwhelmed because he has lost a lot of money on both sides. The stocks he sold also lost a lot of money, and the stock index futures cannot make up for it at all!
The Thai government played this trick very well, causing him to lose a total of more than 600 million US dollars in one fell swoop! Especially when he remembered that Feng Yu had withdrawn and made some profits, Soros became even more angry!
His inner resentment toward Feng Yu exceeded his resentment toward the Thai government and the governor of the Bank of Thailand who ridiculed him in front of reporters.
It is normal for the Thai government and the Bank of Thailand to fight back. He had already expected it when he made the layout.
But Feng Yu's sudden withdrawal was unexpected. If Feng Yu hadn't joined, he would have prepared more funds, and he might have already defeated the Thai government and caused the Thai baht to depreciate crazily.
Unlike now, when he is watching helplessly losing money, he has no power to fight back!
It never occurred to Soros that he actually had no trust in Feng Yu and had people keeping an eye on Feng Yu's capital flow.
How can we have a happy cooperation if both parties have no basis for trust
"Boss, what should we do? Should we continue to borrow Thai baht and fight for funds with them, or?" Zhuken Miller asked.
The original method they discussed was to continue to suppress it slowly, and then allocate funds while persuading Feng Yu to join, while continuing to spread negative news about the Thai baht to continue the panic.
But now that Nanyang suddenly has a new force, they can't hold it anymore. Just the high interest rate on borrowing Thai baht has increased their costs. Even the most convenient short-term loan cannot be used at all. It is simply like sending money to the Thai government.
Soros made a difficult decision: "Stop, sell the stock index futures first to stop the loss, and exit temporarily. When we have funds in place, we will make a comeback!"
By making this decision, he admitted temporary failure and the money he lost.
Zhuken Miller wanted to persuade him. This admission of failure would have a huge impact on the reputation of the fund. But he doesn't know how to persuade him. If he doesn't admit defeat and continues to fight, he will lose more!
…
The governor of the Bank of Thailand was once again surrounded by reporters today. The exchange rate of the Thai baht has returned to 25.2:1, and is still climbing slowly. It should be no problem to return to 25:1.
This time, we teamed up with Nanyang to attack Soros's speculative funds, and we have already seen results! Soros was frightened by them and retreated. They won!
"I said we would make those speculators lose their money, and now we have done it! People of Thailand, no one can defeat the baht, no one can defeat the great Thailand!"
Soros threw the remote control at the TV. There was a pop, and a burst of black smoke came out of the expensive LCD TV.
You want me to lose all my money? Okay, let's see who among us can have the last laugh!
(End of chapter)