"Chairman, as you expected, someone had started to attack Thailand!" The Thai people didn't know that in Yuzhang City, which was a few thousand kilometers away from Thailand, someone was paying close attention to the Thai market. With just a single cable, the latest situation in Thailand was immediately reported to Boss Jia.
"What's the situation?"
"Yes. Since 9 am this morning, the first 400,000 USD order was placed. Then, within an hour, a total of 20 million USD, which is 5 billion Baht, was placed!"
"Now, 12.6 billion Baht orders have been placed, and all of them want to be converted to USD."
"The entire Thailand's market is in chaos, and the exchange rate between Thai Baht and USD is about to exceed 25: 1!" Boss Jia's secretary said.
"I remember that Thailand's exchange rate policy is to lock USD, right?" Boss Jia licked his lips. "They will limit the exchange rate between Thai Baht and USD to 25: 1. Since the exchange rate is about to exceed this limit, the Central Bank of Thailand should be taking action soon, right? "
"Yes. Although it is a little slow, the Central Bank of Thailand has started to buy up those empty orders. Soon, the Central Bank of Thailand will buy up all the orders, and Thai Baht's exchange rate will stabilize." His secretary said.
"It won't stabilize!" Boss Jia rubbed his nose. "Since Soros has made his move, it will not end so easily."
"Chairman, you are saying that Soros is the one behind this?" As Boss Jia's secretary, Soros is very knowledgeable. At least, he is not like the Hua Xia people who have never heard of Soros.
At the very least, he knew that Soros was the capital crocodile who had caused the pound sterling to collapse.
"Let's see … We just need to watch the show. I think it won't take long for him to jump out by himself!" Boss Jia smiled slightly.
— — —
June 12th, 1997. To the entire financial circle of Thailand, it was a soul-stirring day.
Because on this day, Thai Baht's exchange rate experienced a drastic change.
First, a large number of empty orders appeared in the morning, which caused Thai Baht's exchange rate to fall to 26: 1.
But at the critical moment, Thailand's financial institutions intervened and used their USD reserves to buy up those empty orders, bringing Thai Baht's exchange rate back to 25: 1. This is considered a successful defense against this attack.
After the market closed, Thai Baht had reached more than 200 million USD in transactions today. It is equivalent to a week's worth of transactions, and all the Thai financial professionals are excited.
That's right. These people are still enjoying themselves, and did not expect a crisis to befall them.
The next day, the empty orders continued to drop, and Thai Baht's exchange rate started to fall again.
Of course, Thailand's government used their reserves to maintain Thai Baht's exchange rate, and this invisible battle lasted for another day. On this day, more than 500 million USD, which is equivalent to 12.5 billion Baht, were placed in the market. The entire Thai financial market is stunned, and they realized they had met a vicious opponent!
For the next two weeks, Thailand's market is competing with this mysterious power. Every day, more than 1 billion USD, which is equivalent to 25 billion Baht, are placed in the market, and Thailand's financial institutions are buying up all the empty orders. The battle between both parties is intense, and the funds used are more than 10 billion USD.
Thai Baht's exchange rate had been stable between 25: 1 to 27: 1, and it kept falling. The entire world is watching Thailand's market.
Everyone was curious. Who was the victor of this battle?
Did the empty-handed side win, or did multiple sides win?
"Who is this person who is shorting Thailand?" Everyone in Thailand and the rest of the world is asking this question. But after a while, they don't need to guess anymore. This is because the person who is shorting Thailand revealed himself.
On the third day of the battle, a financial magazine published an interview with an old man named Soros.
In this interview, Soros talked about Thailand's economic problems.
In the interview, he said Thailand's high economic growth is due to low-value-added agricultural products and labor-intensive industries.
The international investors had invested in real estate, stock market, and other speculative projects. Thailand's technology and production technologies did not improve. The quality of the labor force did not improve, and the productivity is still low. But the economic growth had pushed up wages, and as the cost of labor increases, Thailand's export advantage decreases.
That's why Thailand's economic growth is not because of their GDP. It's because of the foreign exchange speculation, international hot money, and the abnormal development of the real estate and stock market.
But now, with the recovery of the western economies, international hot money should be leaving Thailand. Without the support of these investments, Thailand will return to its original state, and its economic growth will be halved or even plunge into the negatives.
The exchange rate will also plummet, and Thai Baht will become worthless.
In the end, Soros suggested to those who only have Thai Baht to exchange their Thai Baht for USD. This way, they can preserve their value.
"It's Soros! Soros is shorting us! That bastard found us!" After reading the report, countless people in Thailand's financial industry cried out in fear.
Although Soros' article is about Thailand's economic problems, it has nothing to do with shorting Thailand's economy.
But wasn't Soros' purpose in publishing such an article to mess up the Thai market and make the investors lose confidence in the market?
If not, why would Soros be the first to criticize Thailand's economy? He is making enemies.
What's worse is what Soros said is true. Thailand's economy is a bubble, and it will burst at any time.
Soros's purpose of publishing this article is to reveal his identity and tell the world that he is the one who is shorting Thai Baht.
This kind of behavior sounded very stupid, and there was also the logic of taking the initiative to reveal one's identity during a battle.
But in reality, this was Soros' usual tactic. Soros had a huge reputation in the international financial market, or rather, a bad reputation.
In fact, most people in the financial industry, especially fund managers like Soros, didn't like to show their faces in public. They preferred to hide in the dark. After all, their line of work was too hateful. They would easily drag down the entire country's economy and take away the country's wealth that had been accumulated for more than a decade. Once their identities were exposed, who knew how many people would want to kill them?
But Soros is different. He likes to be in the limelight and likes to be interviewed by the media. He will even write a book about his achievements and heroic deeds in the financial market.
In 1992, he attacked the British pound and caused the pound to plunge by 30%. He also wrote about the classic case of the British pound cutting ties with the European Union.
At the same time, Soros is hated by many people, the global financial market is afraid of him, and he is also the leader of the international financial market.
This was because once Soros decided to short a country, that country's economy would most likely collapse, and Soros would make a lot of money. These examples made many people scared on the spot when they heard that Soros was targeting them.
More importantly, international investors would flock to Soros. Their original intention was to follow Soros and eat meat, shorting these economies together. However, this would also increase Soros's power from the side.
In the end, when Soros announced he will short Thailand, Thai Baht had not collapsed, but many Thais were scared. They knew Thai Baht cannot hold on any longer.
The international investors were like sharks that smelled blood. They started to follow Soros and started to short Thailand's shares. Many local financial institutions also started to short Thailand's shares. They want to profit from their country's losses.
In an instant, Thailand's financial market is jittery. Everyone is afraid of the 18th day of the war.
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