Rebirth of the Tech Madman

It can be said that Xiangjiang adopts the linked exchange rate system in monetary policy, which is an inevitable choice. £∝,

Although Xiangjiang is included in the Four Asian Tigers in terms of economic development, its own hardness is an unavoidable shortcoming. The value of the Hong Kong dollar must be reflected in the form of sugar daddy.

From 1935 to 1972, the Hong Kong dollar was pegged to the British pound. But the pound, the backbone of the Hong Kong dollar, has become increasingly unreliable as Britain's economic strength has weakened.

After the outbreak of the global energy crisis in the 1970s, the exchange rate of the British pound began to float freely in June 1972, and the Hong Kong dollar was pegged to the US dollar in the next two years. At the beginning, it was 5.65 Hong Kong dollars to 1 US dollar, and then changed to 5.085 Hong Kong dollars to 1 US dollar in February 1973.

However, after entering 1974, the weakness of the U.S. dollar became more and more obvious, so the Hong Kong dollar changed to free floating in November 1974.

This was a timely move, and it was very successful at the beginning. However, the essence of Xiangjiang’s monetary policy framework, which relies on the value of the currency of a powerful country, has not changed. At the same time, free floating has led to no clear monetary policy goals. Therefore, Xiangjiang’s economy will inevitably enter a period of turmoil.

From a macro point of view, since 1977, problems including trade deficit, currency devaluation, inflation, etc. have begun to emerge.

When the time entered the 1980s, the future of Hong Kong had to be faced squarely. The ensuing real estate bubble and stock market crash, as well as the shaking of Hong Kong people's confidence in the Hong Kong dollar, pushed the Hong Kong dollar to a sharp depreciation.

Therefore, the villain in Senior Sister Yingzi: The Money Empire deliberately studies the loopholes in Hong Kong's monetary policy. Ambitiously want to control the Hong Kong dollar. It is based on certain facts.

otherwise. The elites in Hong Kong will not flock to this movie, and even the Hong Kong government will jump out to clarify that they are not vegetarians.

The newly released Xiangjiang pegged exchange rate system is a type of fixed exchange rate system, that is, under the pegged exchange rate system, the Hong Kong dollar is pegged to the U.S. dollar at an exchange rate of 7.80 Hong Kong dollars to one U.S. dollar.

However, the linked exchange rate system of Xiangjiang also has its own local characteristics, which is quite different from other fixed exchange rate systems.

Under normal circumstances, the Hong Kong government or the central bank will not take the initiative to intervene in the foreign exchange market, that is, directly affect the exchange rate by controlling the supply and demand of Hong Kong dollars. Instead, in the form of a currency board system, the three note-issuing banks in Hong Kong—Bank of China, HSBC, and Standard Chartered—conducted arbitrage activities, thereby achieving the goal of maintaining exchange rate stability.

To be precise, the exchange rate of HK$7.8 to US$1,

In fact, it only exists at the moment when the three note-issuing banks and Hong Kong Monetary Authority buy and sell certificates of liability. The real market exchange rate is still determined by market forces, and it is not absolutely based on 7.8 Hong Kong dollars to 1 US dollar.

For example, suppose investors buy Hong Kong dollars when external funds flow in. The market exchange rate of the Hong Kong dollar appreciates to 7.5 Hong Kong dollars to 1 U.S. dollar, and the note-issuing bank can hold the U.S. dollar to the Hong Kong Monetary Authority for a linked exchange rate of 7.8 Hong Kong dollars to 1 U.S. dollar. Buying certificates of indebtedness to issue Hong Kong dollars can make a profit of 0.3 Hong Kong dollars for every US dollar exchanged, thereby expanding Hong Kong's monetary base.

This process of monetary expansion will increase the money supply in the market, force interest rates to be lowered, and funds will flow out, and the Hong Kong dollar market exchange rate will return to the level of the linked exchange rate.

As another example, assuming that when a large amount of Hong Kong funds flow out, the market exchange rate of the Hong Kong dollar depreciates to 8 Hong Kong dollars to 1 U.S. dollar, and the note-issuing bank can exchange the linked exchange rate of 7.8 Hong Kong dollars to 1 U.S. dollar with the Monetary Authority with a certificate of indebtedness. You can make a profit of 0.2 Hong Kong dollars from it, which in turn will shrink Hong Kong's monetary base and increase interest rates, attracting inflows of external funds aimed at earning interest, and bringing the exchange rate of the Hong Kong dollar market back to the level of the linked exchange rate.

This transaction is exclusively run by the three note-issuing banks, which compete with each other to ensure that they will intervene in the market when the exchange rate of the Hong Kong dollar fluctuates. Defend that the market exchange rate of the Hong Kong dollar will not deviate significantly from the peg.

The kind-hearted Tang Huan is equivalent to enjoying the 1.8 Hong Kong dollar price difference benefit of this automatic adjustment mechanism in advance.

Although it is inevitable that some people will be jealous of Tang Huan's net income of hundreds of millions of Hong Kong dollars, but in the face of this vision and courage, he will not be convinced.

Moreover, due to the limited amount, the Hong Kong government will not be able to bear it and turn the tables. In addition, the righteousness of the Hong Kong government also recognized the legitimacy of Tang Huan's capital operation, and even took the initiative to consider awards for him. Of course , not the highest level of gbe, I am too embarrassed to show it.

After learning about this news, Tang Huan hurriedly entrusted Zhou Mi as a representative and declined this arrangement—I don’t care about your honors, and what might be interpreted and hyped up, it’s just adding noise out of thin air, let’s still Do something practical.

In Tang Huan's view, the design of Hong Kong's linked exchange rate system can be described as well-intentioned, but the value of the Hong Kong dollar still needs to be reflected in the thigh of a powerful country's currency.

In order for Hong Kong's pegged exchange rate system to function normally, Hong Kong must maintain a huge foreign exchange reserve. Although in theory it is sufficient as long as the foreign exchange reserve is equivalent to the monetary base, in order to avoid potential risks and maintain the stability of the Hong Kong dollar, Hong Kong's foreign exchange reserves must be higher than the theoretical value several times.

This is also one of the reasons why Xiangjiang, a small place in time and space, often ranks among the top ten in the world in terms of foreign exchange reserves. However, the linked exchange rate system of Xiangjiang is not perfect and impeccable, and it is monolithic. Otherwise, it would not have been tossed by Soros from the inside during the Asian financial crisis, and it was on the verge of collapse.

However, it is undeniable that the Xiangjiang linked exchange rate system is indeed the most suitable solution at present.

Therefore, Tang Huan instructed Media Asia TV to do more programs to help the public interpret this monetary policy in order to stabilize people's hearts.

In addition, in order to boost the morale of Hong Kong people who have been hit hard again and again, the first Heung Kong International Marathon sponsored by Heung Kong Telephone began to build momentum intensively.

At the same time, the Disney World Records, which was won by Zhuang Menghua, has already begun to operate in the Greater China region. The branch is located in Xiangjiang, and it has set its sights on this sports event.

Creating a Guinness record is not as difficult as imagined. The first key is to choose a measurable and suitable project.

The first Hong Kong International Marathon will not be held in a rigid and serious manner. Athletes have professional goals, while enthusiasts also focus on participating in the fun.

The organizing committee is planning to apply for a project called The World's Most Connected Marathon Runners, and the scale of 66 people has been prepared. Because of its implication of solidarity and assistance, it has attracted the most attention from the Xiangjiang media. (to be continued.)u