Just like what Feng Yu had expected, the Thai Government does not have enough foreign reserves, and they still need to set aside a portion to deal with other issues. So, the Thai Government went to the Singapore Government and asked them to invest 5 billion USD.
With the Thai Government's 5 billion USD and 2 billion USD, the Thai Government had invested a total of 12 billion USD. Suddenly, Singapore's 5 billion USD to buy Thai Baht, and Thai Baht's exchange rate starts to rise.
The rate had risen from 26.3: 1 to 26: 1, and it is still rising.
The Thai Government suddenly has more funds to buy Thai Baht, and Soros and his men do not have Thai Baht to dump.
Soros panicked. Why is this happening? Why did Singapore suddenly join in?
This is because Singapore and Thailand have a lot of trade, and both countries' relationship is good during the current government.
Another important reason is that Soros had set up his Forex contracts in Singapore, and the Thai Government had found out about it.
When the Thai Government saw this, they realized that Soros is going to deal with them after dealing with Thailand. If Soros had attacked separately, we might not be able to deal with him. But since Soros is attacking at the same time, don't blame us for being ruthless.
Singapore and Thailand had the same idea. They want to make Soros suffer and break his will. They want to let Soros know that it is not the same as a few years ago, and it is not easy to manipulate a country's currency.
If Soros fails in Thailand, his reputation will be affected, and he cannot lead his men to attack a country's currency, especially Singapore.
The Thai Government wants Soros to back off and is confident of doing so.
… …
The Governor of Thailand's Central Bank faced the reporters solemnly. "We are fighting to protect Thai Baht, and we will make those speculators lose everything!"
It is obvious who the speculators are.
The Governor of Thailand's Central Bank became the guardian of many Thais, and after using 7 billion USD of foreign reserves and 5 billion USD from Singapore, Thai Baht's prices start to recover.
The stock market also starts to recover, and everything seems to be going well.
But Feng Yu firmly believes Thailand will lose!
First, the Thai Government does not have enough foreign reserves. They only have around 20 billion USD. This time, Nanyang had intervened, and Soros had not prepared enough. He still had a lot of funds to transfer.
Also, Feng Yu did not intervene. If Feng Yu intervenes, the Thai Government will have to use all their foreign reserves to stabilize the situation.
Also, Feng Yu knew the Thai Government does not have any other solutions. They still need to spend a large sum of money to stabilize the property prices in China.
The financial crisis was about to break out, and the stock market had started to fall, but the housing prices were still rising!
The Thai Government does not dare to let the property market crash. They felt once property prices plummet, it will repeat Japan's tragedy.
That's why they had to think of ways to stabilize the stock market and fight with Soros in the foreign exchange market. At the same time, they still have to stabilize the domestic real estate market. Lastly, they still have to stop those foreign investors from withdrawing their investments!
If it was one or even two issues, Feng Yu believed the Thai Government could handle it. But when these things happened at the same time, it was impossible to take care of them at the same time.
Also, Feng Yu knew the Thai Government was more worried about the property market crash than Baht. That's why they had used more funds to invest in the property market.
But from the looks of it, the Thai Government had won. Thai Baht was rising rapidly, and it had reached 25.7: 1. Tomorrow, it will return to 25: 1.
At this rate, the Thai Government and Nanyang Government will run out of funds. They will be able to stabilize the exchange rate at this rate. Feng Yu felt it was impossible for Baht to return to 24: 1!
… …
Soros looked at Thai Baht rising, but he could not do anything to stop it.
It seemed that he had lost this time. If Thai Baht returns to 25: 1, he will lose at least 400 million USD even if he cancels his Forex futures contracts. Also, the stock market had started to recover, and the stock index had started to rise. Soros's profits from his stock index futures contracts had decreased.
Soros's strategy was to attack the stock market and foreign exchange. If everything goes well, he can make money from both options. But now, he could not even take care of himself. He had lost a lot from both options, and he had lost a lot of money from selling his shares. His stock index futures contracts could not recover his losses!
The Thai Government had made a good move. Soros had lost more than 600 million USD! When Soros remembered Feng Yu had withdrawn from the game and made some profits, he was furious!
Soros's hatred for Feng Yu had exceeded his hatred for the Thai Government and that Thai Central Bank Governor who had humiliated him in front of the reporters.
It was normal for the Thai Government and Central Bank to retaliate. Soros had expected this to happen when he was setting up his strategy.
But Feng Yu's sudden withdrawal was out of Soros's expectations. If it weren't for Feng Yu's participation, Soros would have prepared more funds, and the Thai Government might have collapsed. Thai Baht will depreciate.
Now, Soros could only watch the Thai Government losing money, and he could not retaliate!
Soros had never thought that he did not trust Feng Yu and had been monitoring Feng Yu's funds.
Both sides did not have a foundation of trust, so how could they cooperate happily?
"Boss, what should we do? Should we continue to borrow Thai Baht and compete with them, or …? "Drucken Miller asked.
Soros's initial plan was to continue to suppress Thai Baht and use their funds to persuade Feng Yu to join them. At the same time, they will continue to spread negative news about Thai Baht.
But now, with the sudden addition of Nanyang, they couldn't hold on anymore. Just the high interest from borrowing Thai Baht had increased their cost by a lot. Even the most convenient short-term loans could not be used anymore. It was like giving money to the Thai Government.
Soros made a difficult decision. "Let's stop. Sell our stock index futures contracts to stop our losses and withdraw temporarily. When we have enough funds, we will make a comeback!"
Soros's decision was admitting that he had lost temporarily, and he had lost a lot of money.
Drucken Miller wanted to persuade Soros. This admission of defeat will affect the fund's reputation. But he does not know how to persuade Soros. If Soros does not admit defeat, he will suffer more losses!
… …
The Governor of Thailand's Central Bank was surrounded by reporters again. Thai Baht had returned to 25.2: 1, and it is still rising. It should not be a problem for it to return to 25: 1.
This time, the joint attack on Soros's speculative funds with Nanyang had yielded results! Soros was afraid of them and had retreated. They had won!
"I had said we will make those speculators lose everything. Now, we have done it! Thai people, no one can beat Thai Baht. No one can beat the great Thailand! "
Soros threw the remote control at the TV. Bam! The expensive LCD TV emitted black smoke.
You want to make me lose everything? Fine. Let's see who will have the last laugh!
… …
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