My Fintech Empire

Fang Hong looked at the participants in the video and said in an orderly manner: "Now our country can still supply goods to the world. They have to buy whether they want to or not. There is no reason not to make money. I even think it is not impossible to raise the price."

Under normal circumstances, currency depreciation is beneficial to exports but not to imports. This is mainly because currency depreciation means that the country's currency is worthless. Foreign currency can be exchanged for more amounts of the country's currency. In foreign trade, the same foreign currency funds can buy more goods in the country, and they are more willing to place orders to buy goods in the country.

Currency depreciation is not good for imports, which means that more funds are needed to buy foreign goods.

If the currency appreciates, it will have a huge impact on export trade and is beneficial to imports.

Take the RMB against the US dollar as an example. It is now 7 to 1. If it appreciates to 6 to 1, this is the depreciation of the US dollar relative to the RMB, which is equivalent to less RMB that the US dollar can exchange.

After the appreciation of the RMB, the same amount of US dollars can buy fewer goods from Dongda, and Beijing Magnesium will import less goods from Dongda. The goods of Beimei are equivalent to a certain degree of depreciation for Dongda, which makes the goods of Beimei sold to Dongda at a low price.

In fact, there are not many goods that Amei can sell to Dongda, and Dongda will never sell the Amei that it wants, and it cannot produce the Amei that Dongda does not want.

Only under normal circumstances will currency appreciation be good for imports and bad for exports.

But the problem is that we are in an extraordinary moment. Even if the RMB appreciates against the US dollar, it can benefit imports and will not affect exports at all.

The answer is very simple, because the global supply chain is broken and almost in a state of shock. Only Dongda's industrial production capacity can operate normally in the world, and the production capacity is even expanding, while other regions are in a state of suspension.

In this case, whether your currency appreciates or not, he can only pay money to buy goods from you, and he has no bargaining power.

Why not appreciate?

At this moment, Fang Hong smiled and added: "Of course, in addition to this, more importantly, we have more room for interest rate cuts."

The participants nodded involuntarily. Dongda is now in a situation where it is sitting on the Diaoyutai. It is already powerful and terrifying, and it has won by winning bye. The advantage is not small.

After some discussion, about 20 minutes of discussion, a consensus was finally reached.

That is to choose to stay put and not follow the pace of interest rate cuts in the United States. This is actually a very important signal, which means that the relationship between the RMB and the US dollar has begun to be dependent.

The final decision is to "spicy powder" operation, and to conduct a regular operation of 100 billion yuan of medium-term lending facilities (MLF) tomorrow, with an operating interest rate of 3.15%, which is the same as before, and will not follow the Fed to go all-in.

However, other countries have already started to go all-in, and countries like Xiaori and Europe have been implementing zero interest rates for a long time. As the most important currency in the world, the interest rate level of the US dollar is also the benchmark for comparison of various currencies.

With the Fed's all-in, the interest rate gap between North America and Europe will narrow, directly narrowing to the lowest level in the past five years.

Hot money in the market is all profit-seeking, and will go to where the interest rate is high.

So when the interest rate gap between Argentina and other regions narrows, it means that the attractiveness of the US dollar will also weaken. Without so much money to buy the US dollar, the US dollar will tend to depreciate.

And in fact, it is true. After midnight, on Monday, March 16, the US dollar fell sharply against the Japanese yen and the euro.

After the Fed announced zero interest rates, many central banks around the world also followed suit. The Bank of Spain announced a 75 basis point interest rate cut and is brewing a large-scale stimulus plan; South Korea also followed suit and cut interest rates by 50 basis points in advance to a historical low of 0.75%. Originally, South Korea would not hold a meeting on interest rates until April, but it obviously can't wait.

In addition, Xiaorizi also moved up the interest rate meeting originally scheduled for Wednesday and Thursday to Monday, and launched a series of rescue plans to inject funds into the stock market and economic fields. This is the first time that Xiaorizi has held a meeting outside the routine schedule since November 2011.

As the East 8 time zone gradually enters daylight, the A-share market is about to usher in its first trading day this week.

A-mei dropped such a bomb last night. Under the global system, the Eastern power cannot be completely immune. At this moment, interest rates are being cut outside. Everyone in China is now very concerned about whether they will follow suit. Another thing is what kind of trend will the RMB exchange rate show in the future?

The outside world certainly doesn't know, but Fang Hong knows that he will not follow suit in cutting interest rates. He will just release some "spicy powder" normally, and will not follow the other rice companies in all-in.

As for the RMB exchange rate, when the external commotion in the past two months is almost over and the panic is released, it will inevitably usher in an extremely strong and epic unilateral appreciation trend.

Now the whole world can only buy from me. If I don't raise the price, you will buy. If I raise the price, you still have to buy.

…

As time passed, at around 8 o'clock in the morning, the small stock market in the Asia-Pacific market opened first, and its 225 index plunged at the opening, followed by major markets in the Asia-Pacific region falling one after another.

At 8:55, the opening price of the SGX 50 Index came out. Instead of opening low, it opened high at 6179.14 points +0.52% despite the negative external factors. It was mainly because the high opening of the large-capital listed companies in the galaxy supported the high opening of the SGX 50 Index.

Because stock repurchases will continue today, and the call auction will start.

However, the external market is really lagging, and the panic caused by the negative external factors is too great. In particular, the "smart" rescue move of the Federal Reserve at the weekend scared everyone, causing the SGX 50 Index to open high and go low after opening at 9 o'clock.

It soon broke through the 6100-point mark and began to test the important integer mark of 6000 points.

At about 9:46, the 6000-point mark was also in danger, but it rebounded afterwards, because the major listed companies in the galaxy were buying back stocks in the secondary market, and the stabilization fund was also increasing its holdings of the six major SGX 50 ETFs in an orderly manner according to plan.

At around 10:30, the SGX 50 Index fell back to the intraday low again, once again testing the support of the 6,000-point mark, but then stabilized and did not fall below the intraday low, and rebounded steadily again.

At this moment, the repurchase funds of many listed subsidiaries of the SGX and the trillion-yuan stabilization fund in the SGX market almost became the only long positions in the market, while the vast majority of other funds were bearish on the market and sold.

Foreign capital was selling, domestic institutions were also selling, and investors who had held the SGX 50ETF for a long time either stopped profit or reduced their positions.

However, the super main force also showed strong long-term strength. Under the increase in holdings of the SGX trillion-yuan stabilization fund, and the continuous repurchase of major listed companies in the SGX such as Xingyu Technology and Matrix Quantum, the SGX 50 Index rebounded steadily again after 10:30, and the 6,100-point mark was lost and regained.

At around 11 o'clock, major market software pushed the message:

[The SGX 50 Index turned positive, regaining the 6,100-point mark, and the current SGX market turnover exceeded 650 billion]

……