When I am reborn in Hong Kong, I just want to lie down

Many people believe that to short a country's currency, one needs to borrow a large amount of that country's currency and then sell it to suppress it. In fact, there is a more insidious way, which is to consume the country's foreign exchange reserves.

In the VIP room of the Bank of Scotland, several banks lent large amounts of U.S. dollars.

"Thank you for your help and we will remember your friendship."

This time Silicon Valley Bank borrowed US$20 billion from the Bank of Scotland for three months, and the interest rate was 10% higher than that of its peers. The Bank of England, the central bank leading the UK, is very proud of this business. Silicon Valley Bank has issued loans in recent years. In comparison, Silicon Valley Bank, which was already facing the risk of breaking its capital chain and could not get help from America, came to Daiying and asked many banks in London for help for a short-term loan.

Since Silicon Valley Bank's customers are a large number of high-tech companies, and these companies are now in a critical period (Li Bu said), they need a large amount of short-term loans for large-scale production.

The Royal Bank of England, which is more famous than the Bank of Scotland, lent more this time, reaching US$30 billion.Standard Chartered and HSBC have not escaped the fate of being robbed of their money. The top ten banks have been robbed, and even some small banks have been lent. Of course, Silicon Valley Bank is not the only one to come forward, there are also companies Merger requires borrowing a large amount of US dollars to conduct cross-border mergers and acquisitions.

And there is even a clause in some contracts that if there is no US dollar, the repayment can be made in pounds sterling at the exchange rate on the day of delivery.A financial institution actually agreed and signed the contract.

But it's no wonder they didn't pay attention to this clause. It's just that they are too narcissistic about their past glory. Moreover, the pound/US dollar has risen in the past few days. I think it is only temporary. When the pound rebounds, are you afraid that you will lose money?

After Li Bu got these contracts, he showed a strange expression on his face and said to Yang Xiaoling next to him: "I just told the people below that they dared to mention it to the other party, and if they dared to mention it, they would sign it ,What's happening here?"

Yang Xiaoling just smiled awkwardly, not knowing what to say. Could it be that there are always fools for you to lie to, so you can just have fun and get an advantage to behave?

In this wave, Daiying drew nearly [-] billion US dollars.

Sitting in the office, Li Bu looked at London under the setting sun and said to himself: "I have made sufficient preparations for you. The stage has been set. Don't let me down!"

Where did Li Bu's inspiration come from?During the Southeast Asian financial crisis in [-], Asia was prosperous and needed a lot of U.S. dollars for development. At this time, Wall Street acted as a timely help and began to make short-term bank loans in Southeast Asian countries. Then, before launching the attack, the loan repayment period came, and then When the time came, all the loans were ruthlessly withdrawn, causing the other party's foreign exchange reserves to decrease sharply, and it was unable to resist the short selling from Wall Street.

Of course, these are all done by Quantum Fund, what does it have to do with others.

The two surrounding countries have fallen, and the danger is approaching. Dai Ying who did not realize it, you deserve to die, don't blame others.

Recently, some newspapers published a piece of financial news. The fund manager of a certain fund believed that it was a wrong decision to bring Ying to join ERM. When his own strength did not match the exchange rate, he overestimated himself, which would lead to tragedy. Put Daiying into a situation of no return.

As soon as this news came out, it did not attract the attention of others. Instead, it attracted a lot of ridicule. Now that Daiying joins this system, it will bring employment and exports to Daiying, but they have forgotten that the anchor of this system The currency is the German mark. Since the merger of the two Germanys, inflation has increased. The simplest and crudest way to curb inflation is to raise interest rates. Deutsche Bank, the German central bank, thinks so and does this. In this way, under a fixed exchange rate Other currencies will be abandoned, causing currencies to flow back to Germany. Other currencies will either follow suit to raise interest rates, or the ERM agreement will be destroyed.

In the foreign exchange market, GBP/USD is rising, the short side has gathered, just wait for the opportunity.The selling pressure on the pound is expanding, and the financial sector leading the UK has finally noticed something is wrong, but they are considering whether to use foreign exchange reserves to support the crumbling pound.

Because the GBP/USD pair has been slowly rising recently, but if you change it to the USD/GBP rate, it has been falling. Many old leeks know that the most tormenting thing is not the big rise or fall, but the drop a little bit every day. When such a situation occurs and the market falls for a long time, people's patience will be worn away, and collective selling will occur.

The current USD/GBP situation is like this. If it continues like this, the shaken confidence will leak out like a burst dam.

"There is no improvement if we use foreign exchange reserves now. The only thing that can save us now is to make the Germans give up raising interest rates or recognize the current exchange rate. Otherwise, if we do not get external assistance, our monetary system will have to be rebuilt. , our economy may regress." The Finance Minister is reporting to the Prime Minister.

The Prime Minister looked at the old nobleman opposite. He was a person who easily accepted advice. He understood the trouble that leading the British was encountering now, and said: "Then we can only convince the Germans to help us."

On September 1992, 9, in order to save the endangered British government, the British Treasury and the Bank of England sent personnel to Frankfurt and Bonn to try to convince the Germans that the current exchange rate level was economically reasonable and feasible. .

Li Bu found out that Dai Ying had sent a delegation to Germany, and said with a smile: "Look, they are in a hurry. If they only contacted by phone, the exchange rate might still be able to survive for a while. Now they have to send people to ask for help, which shows that I don’t have much reserves left, so all I can say is, let the storm come more violently! Haha..."

Others cannot understand the boss's bad taste. Yang Xiaoling actually wants to say: Boss, you look like a villain behind the scenes.The others could only smile awkwardly beside him to cater to the boss's happy mood at this time.

Subsequently, there was very good news for the short side and very unfriendly news for Britain. The official who led the team to Germany this time was the chief economic adviser to the Ministry of Finance.

He said: "This visit has been the most time-consuming trip. I think we have done our best to tell the Germans that there is no problem with the pound exchange rate and can continue to be stable. However, we really don't know if we have convinced the Germans. "

This is a big signal. The short signal is already there, just like all the sharks have smelled blood and are ready to prey.