The Rebirth of Shazhu: Starting from Staying Away from Beasts

[Before and in the initial stages of the fierce attack by hot money, the Terra government faced a severe situation of continued sluggish domestic economy and weak growth.

In desperation, they had no choice but to give up the fixed price anchor system that had been maintained with the US dollar for a long time.

Immediately afterwards, they resolutely implemented a completely new monetary system - a floating exchange rate system.

The original intention is obvious, which is to allow the Thai baht to depreciate moderately.

This strategy is to attract more foreign trade orders from overseas, thereby stimulating the country's export industry and revitalizing the domestic economy.

However, contrary to expectations, this move was actually seen as an excellent speculative opportunity by those hot-headed and eager speculators.

Therefore, these cunning speculators openly put up the guise of investing in Terra to confuse the public;

On the other hand, he secretly exchanged the large amount of US dollars he held into Thai baht.

Let's make a simple assumption:

If at the beginning, one US dollar could be successfully exchanged for 25 Thai baht, then when the hot money invested a full 100 million US dollars.

They can easily mortgage and exchange a huge amount of 2.5 billion Thai baht from banks or related financial institutions.

After obtaining the loan in Thai baht, hot money began to stir up trouble in the foreign exchange rate market and shorted the Thai baht on a large scale.

They skillfully used various means and tools to sell off all the billions of baht they had just obtained.

At the same time, they tried every means to convert the sold Thai baht into US dollars.

This large-scale operation was like a storm, which instantly caused huge waves in the financial market and triggered a strong panic effect.

As time went by, when the loan contracts signed at the beginning expired one after another, shocking things happened.

——At this time, the Thai baht exchange rate is completely out of the control of the Thai government.

Due to the reckless and crazy short-selling behavior of hot money, the value of the Thai baht has continued to plummet.

The huge price difference caused by each sharp drop has become a rich source for these hot money to easily make huge profits.

Here, He Yuzhu and Xu Damao finally made up their minds.

Without hesitation, they quickly exchanged the large amount of Thai baht they held into US dollars.

As time went by, the amount of dollars in their accounts snowballed.

Looking at the ever-growing numbers, the two felt both excited and nervous.

However, when the amount of US dollars in the account reached a considerable level, they decisively stopped all operations at hand.

Because at this moment, they just need to wait quietly for the key signal sent from the Thai government.

Once they receive this signal, they can enter the market again and start a new round of investment activities.

Meanwhile, in the distant country of Terra, a turbulent decision-making meeting was going on in full swing.

Senior leaders of the Thai government, many well-known financiers and giants from major banks gathered together.

Round after round of intense discussions and consultations were held around the current economic situation facing the country.

Finally, after a long debate and weighing of the pros and cons, they made up their mind to give it a try.

July 25th was destined to be an extraordinary day for Terra.

The Thai government officially announced a new monetary policy.

The first step is to significantly increase interest rates to attract more funds into the domestic market.

Immediately afterwards, the Thai government announced that it would immediately stop a series of policy measures that had previously allowed the issuance of Thai currency loans to foreign capital using foreign currency as collateral.

In addition, banks will restart the exchange business between Thai baht and US dollars, but this time the exchange period will be extended to a full week.

Moreover, the specific exchange conditions will depend on the loan situation.

After all, there are still many loan contracts signed by hot money that have not yet expired, and if you act rashly, it may trigger a series of unpredictable risks.

Obviously, the Thai government's move has a clear intention - to manipulate the exchange rate trend.

For a while, tourists will have the illusion that the Thai government has run out of tricks.

This has led to hot money increasing its efforts to short the Thai currency, and this is also a gesture of goodwill from the Thai government to Hong Kong capital.

It is also a signal to start taking action, taking the opportunity to deliberately allow the Thai baht to further depreciate and fall, allowing Hong Kong capital to buy at a lower price.

At this moment, the entire Thai government seems to have placed all its hopes on investment institutions from Hong Kong.

They can only go all in with their few chips. The mere exchange of Thai baht for US dollars can basically be regarded as emptying all foreign exchange reserves.

We only hope to use the other party's power to turn the tide and achieve national economic recovery and prosperity.

This is undoubtedly a thrilling gamble!

If the investment institution in Hong Kong fails to fully support the Thai government as agreed in advance, the consequences will be disastrous.

At this critical moment, when the international hot money learned about the measures taken by the Thai government, they all smiled so hard that their mouths were almost stretched to their ears.

In their eyes, the Thai government has now run out of ideas and is at a loss as to what to do.

This practice is nothing more than a last-ditch effort to survive.

As time goes by, more and more capital begins to move frantically, like sharks smelling blood.

They swarmed into the market, stepped up their efforts, and launched a fierce short-selling offensive against the Thai baht without mercy.

At this moment, the person who is most caught in a dilemma is probably the investment institution that is cooperating with He Yuzhu and Xu Damao.

The manager of the agency came to the door in a panic, but after seeing He Xu and the other two, he didn't even bother to say a word of greeting.

He then went straight to the point and said, "Mr. Xu, Mr. He.

I just want to ask, how confident are you that you will succeed if you operate this way?

I don't mean to pour cold water on you or find fault with you.

But now, because of you two, we have resolutely placed the investment project in our company.

This action triggered a series of butterfly effects.

Now throughout Hong Kong, many investment institutions and individual investors have witnessed the high rate of return on investment achieved by our company.

They all rushed to establish partnerships with us and handed over large amounts of short-selling investments to their brokerage firms.

However, if your investment unfortunately fails this time.

Then it will definitely be a major event that seriously damages the reputation of our entire company!"

Things will become very interesting if both of you are successful in your long position on the Thai Baht.

Because those institutions and individuals who invest their money in our company and choose to short the Thai baht are very likely to suffer heavy losses or even lose all their money!

You know, at this very moment, according to our estimation, if things develop as expected, we will probably be pushed to the forefront of public opinion.

After all, your investment behavior is seen by the outside world as the behavior of our brokerage company.

In addition to your massive long position in the Thai Baht, you are also directing your clients to short the Thai Baht, which is a somewhat contradictory approach.”