Dominate South Asia

"The British are very slow to act. Hong Kong's foreign exchange reserves are simply not enough for exchange." Lilith said: "In less than three days, their foreign exchange reserves will be exhausted, and another devaluation of the Hong Kong dollar will be inevitable."

"Do the British really want to watch Hong Kong's economy collapse and are unwilling to use their own financial resources? Is it because they have broken the pot?" Mhamad was a little confused. Could it be that the British knew that Hong Kong would be handed back to the mainland sooner or later, so they just ignored it?

If this is the case, Namhamad will have to withdraw from this battle. After all, his target is not Hong Kong, but the British government behind Hong Kong. As long as the British government bails out the market, it will be severely damaged.

But now it seems that the UK is letting Hong Kong fend for itself.

Mhamad is very surprised that when Hong Kong's foreign exchange reserves are exhausted, it will be the time for Hong Kong's economy to collapse.

"Continue to pay attention to the UK's reaction. When necessary, our funds can flow into the UK." Mhamad said, anyway, it has already become a big deal. The big deal is to snipe the pound in the capital market!

Time continues to pass, and three days have passed. When citizens who still have not exchanged their US dollars this morning continue to wait in front of the bank to open, they find that it is already past the work time, and the bank door has not yet opened. !

What's going on? According to the time, today is not a rest day?

An ominous premonition suddenly surged in the hearts of the citizens.

Soon, citizens discovered that all banks were closed, and there was no official explanation. This confirmed that their hunch was correct. Sure enough, Hong Kong dollars could no longer be exchanged for US dollars!

At the beginning, the official vowed to guarantee the exchange rate of 7.8 Hong Kong dollars to one US dollar, and they also relied on the Exchange Fund as the guarantee. Now it seems that it is completely false! Hong Kong’s currency is simply issued indiscriminately! Therefore, it can still be used normally. Now, when the stock market is in a storm, this currency cannot be used.

What will come down? Depreciation? The depreciation of the Hong Kong dollar means that their wealth has shrunk!

In the afternoon, angry Hong Kong citizens. They began to take to the streets to protest against the government's inaction. At this time, why didn't the Governor speak out?

Especially outside the Governor's Palace, the citizens gathered together and shouted inside, asking the Governor to come out and explain to everyone.

Sir Wilson gently opened the curtains and looked at the crowd outside. Cold sweat broke out on his back.

Three days, over there in London. There was no reaction at all! What should I do? Announcement of abandoning fixed exchange rate? The Hong Kong dollar will immediately depreciate, even by more than half, for a Hong Kong that relies entirely on foreign trade to prosper. This will simply cause Hong Kong's economy to suffer the heaviest blow!

Now, there is another demonstration in Hong Kong, and there are many reporters inside. Soon, the events in Hong Kong will spread all over the world, and the London government will appear incompetent.

"Governor, there is news from London." At this moment, Sir Wilson's door opened. A secretary came in and said to him: "London has decided to provide us with US$30 billion in low-interest loans to invest in our Hong Kong dollar market to stabilize the confidence of citizens."

Thirty billion U.S. dollars is indeed a small amount. The problem is that Britain's foreign exchange reserves are not large, and the total reserves are only a few hundred billion U.S. dollars. It is rare to be able to invest US$30 billion to help stabilize Hong Kong's financial order.

"Wow." The curtains opened, and Sir Wilson opened the window, looking at the tidal flow of people outside.

"Everyone, our Hong Kong economy has always been very healthy, and there will be no crisis in the Hong Kong dollar. Everyone must trust the Hong Kong dollar. Banks are temporarily suspended today mainly because we lack sufficient shipping capacity to transport our foreign exchange reserves. Our security work also needs to be done as well as possible," said the Hong Kong official. The Governor looked at the flow of people outside and said: "Tomorrow, the banks will reopen. Please be patient for the time being. Anyone who wants to exchange U.S. dollars can do so. However, the interest rate of our Hong Kong dollars is already much higher." Compared with the US dollar, if you want to invest, storing Hong Kong dollars is the most suitable choice.”

The people below looked at the governor. The governor was full of confidence. Could it be that he was suspicious?

London has used one-third of its foreign exchange reserves to invest in the Hong Kong market to help stabilize the Hong Kong dollar market, which is experiencing a run against the US dollar. The news quickly spread in the financial world.

After learning the news, an old man in his fifties from far away in the United States had a smile on his face.

The British government invested its own foreign exchange reserves to prevent the Hong Kong dollar from falling. Unknown to them, a huge conspiracy began to move towards the British monetary system.

"We found some data." Islamabad, Lilith said to Mhammad: "After the British began to provide foreign exchange reserves to Hong Kong, other funds began to enter the United Kingdom. This capital is about 10 to 20 billion U.S. dollars. , Now, these funds are shorting the pound in the British market.”

These data were obtained by accident. The traders under Lilith followed the pace of others, found some funds, and rushed to the British market. They bought high and sold low, and began to short the pound.

Hamad's eyelids suddenly twitched, and he thought of later generations. In 1992, the pound was attacked by an international financial giant. As a result, it suffered heavy losses, but this international financial giant made a solid profit. A pot of gold.

After that, the capital of this tycoon began to transfer to many countries, specifically selecting countries with loopholes, and finally formed a financial storm that swept Southeast Asia.

This person is called Soros! His first pot of gold was poached from the British!

This is a shrewd Jew who escaped from the iron hoof of the Nazis in his early years. The experience at that time made this person's courage, courage, and insight far beyond ordinary people.

In 1973, he founded Soros Fund Management. In 1975, he began to attract attention in the Wall Street community, and the speed of wealth appreciation was impressive. In 1979, he established his first foundation: Open Society Foundation. At that time, his net worth was about 25 million US dollars. In 1979, Soros decided to rename the company Quantum Fund, but it was not until 1992 that he began to rob the country.

Now, it is only 1987. Did Soros, the old fox, smell something?

Muhammad knew that in 1992, the pound sterling crisis was mainly because the pound sterling joined the European Exchange Rate Mechanism. The exchange rates of various currencies were roughly fixed and floated within a space. The interest rates of central banks in various countries were different, which led to holders increasing or decreasing their holdings of different currencies. When the Soros Group smelled the crisis in the UK, it struck hard and returned with a full load.

Now, although the UK has not joined the European Exchange Rate Mechanism, their economy is still unstable, especially now that the UK is facing the risk of high inflation, and their foreign exchange reserves have been divided into Hong Kong by one-third.

When someone maliciously shorted the pound sterling and then sold it, the British government was simply unable to resist.

Although a person's wealth is limited, the fund has absorbed a considerable amount of wealth from the people and is more powerful. Historically, Soros has shorted more than 10 billion pounds.

"Our funds will follow into London." Muhammad immediately made his own decision: "Together we will accelerate the decline of the pound and make another fortune from it."

The run on the Hong Kong dollar only adds trouble to the British government, but Soros is ready to profit from it. When Muhammad found out, he naturally did not want to lag behind and followed Soros to jointly attack the pound!

The British did not know that a huge danger was slowly approaching.

The Quantum Fund began to short the pound continuously. Following the Quantum Fund, countless unknown funds also began to pour into London to jointly short the pound.

Soros was a little curious about these unknown funds. Who was like-minded with him? Although the other party did not indicate his identity, he was undoubtedly here to speculate. If they did it together, they would gain more.

Now, the time has entered mid-October.

The UK did not realize the arrival of the crisis until October 12, when the attack on the pound finally began.

When people were still going to work as usual, bank employees were also doing business as usual. The bank run in Hong Kong, half a world away, seemed to be just a piece of news.

Tentatively, Quantum Fund threw out 1 billion pounds of funds, which was a signal to the rest of the funds.

At this time, British financial institutions had not yet realized that a financial war had arrived.

Later, a 5 billion pound plate was thrown out. This large-scale throwing immediately caused a change in the pound exchange rate.

The pound began to depreciate!

Soros looked at the market trends. It seemed that this secret opponent had responded to him, and the opponent's hand was bigger.

He also threw out 5 billion pounds!

In just half a day, more than 10 billion pounds were thrown out in the foreign exchange market. Suddenly, the pound began to depreciate against the US dollar by a large proportion, and British financial institutions panicked.

For them, there is only one choice, throw out the US dollar and catch the pound! Let the pound exchange rate land softly!

Unfortunately, this requires a large amount of foreign exchange reserves as support. No matter how many pounds the other party throws out, they have to catch it with US dollars!

The UK's foreign exchange reserves are not much, and one-third of its reserves were used to support the Hong Kong dollar crisis that just broke out. All financial officials are aware that the crisis is approaching, and this is a malicious attack by international capital! (To be continued ~^~)