Rebirth of the Strongest Tycoon

"Immediately take out $3 billion to enter the market and stabilize the exchange rate!"

"Then make an announcement to boost market confidence."

Jack Staff was able to serve as RBA governor no less than Eric Archie, and he gave the order right away.

Eric Archie was refreshed, and he was immediately executed.

With the rapid entry into the market of the Reserve Foreign Exchange of the Reserve Bank of Australia of up to US$3 billion, the Australian dollar stopped falling, and even had a rising trend after the shock.

Seeing this, the bulls immediately supported the RBA.

"President, the situation is not very optimistic. Our foreign exchange reserves are insufficient, and we should find a solution as soon as possible."

Eric Archie said worriedly.

The Reserve Bank of Australia's latest dollar foreign exchange reserves were down from previous levels at $6.71 billion.

Now, all of a sudden, $3 billion is put into the market, so the US dollar foreign exchange reserve is only $3.71 billion.

Judging from the intensity of the war that broke out in the Canadian foreign exchange market last year, such a little foreign exchange of US dollars was far inferior to that of Canada at that time, and it was difficult to stop the attack of the bears.

What's more, the shorts this time are still the ones whose strength has been strengthened after the Canadian foreign exchange market war!

"I know, we will discuss the countermeasures at the next meeting, but for now, it is enough to stabilize for now."

Jack Staff said with a sullen face, his eyes very solemn.

Soon, the two hurriedly left the exchange rate department and came to the conference room.

When they arrived, all the high-level executives at the headquarters were already in place, and those who asked for leave for business trips were fine.

After taking the seat on the main seat, Jack Staff immediately said with a serious look: "Just now, short sellers led by Bridgewater Fund and Tiger Fund in the United States are selling the Australian dollar aggressively, trying to repeat the disaster in the Canadian financial market last year. "

"This is the biggest crisis we have encountered since the Australian dollar became free-floating in December 1983, and this test is related to the safety of our country's financial markets."

"I just came back from the exchange rate department, and just now I have directly approved the entry of three billion US dollars of foreign exchange reserves into the market to stabilize the Australian dollar exchange rate."

"The purpose of calling you here is to brainstorm ideas, discuss countermeasures, and repel those financial robbers!"

As soon as the words fell, the high-level seated people suddenly started talking.

Someone suggested: "President, with our current US dollar foreign exchange reserves, it is definitely difficult to hold on to the back. I suggest to immediately sell other foreign exchange such as British pounds and Japanese yen, and exchange them for dollars!"

"I agree that these foreign currencies, if all converted, should be able to raise over four billion dollars!"

"I agree."

Jack Staff didn't say anything, but he took a quick note with a pen, and he obviously agreed with it.

An executive expressed his opinion: "I don't recommend that funds enter the market immediately. The exchange rate should be allowed to fall back to around 0.90, and then a large amount of funds will enter the market to save our capital costs and at the same time have more room for manoeuvre."

The only response to this executive was Jack Staff's cold eyes. He just ordered to invest 3 billion US dollars into the market to buy Australian dollars. Did this executive have no ears or no brains!

"I am against it. The bears must have been tentatively attacking at first. They are investigating our attitude. Even if we show some weakness, it will be infinitely magnified, and then we will have more trouble."

"I think there must be a resolute fight back to stabilize market sentiment and investor mentality."

...

Others have also voiced their opinions, and on this issue, the majority think they will fight back firmly.

Jack Staff didn't want to waste time here, he slapped the table directly and said, "Okay, skip this question, and we must fight back firmly. Our weakness will bring huge risks, and this risk cannot be taken!"

"Next suggestion!"

After Jack Stafford made the decision, executives who had previously made such comments shut their mouths and pondered other ways.

At this time, Eric Archie, Director of the Exchange Rate Department, suggested: "President,

I propose raising short-term interest rates, increasing the cost of institutional borrowing, and using policy instruments to signal our attitudes to scare the bears and cut off some of their funding sources. "

"The current lending rate is 14.745 per cent, and I recommend raising it to above 20 per cent."

Compared with raising US dollar foreign exchange defense, this policy of adjusting interest rates is somewhat similar to the strategy of drawing wages from the bottom of the pile, although it can only be effective for some institutions.

But at this time, it can weaken the power of the bears in the future and make some bears stay away, even if it is successful.

Another, more aggressive executive expressed an attitude of support: “I suggest mentioning 30% or more, hitting hard, and making our attitude clear.”

But someone immediately stood up and objected: "I object, such a high interest rate will have a huge negative impact on the domestic economy, and the bad debt problems of banks and enterprises will be exposed. This side effect is too great."

"Once we do not solve this crisis in a short time, then our domestic financial market will break out, and both internal and external crises will break out. The problem is too big!"

"At that time, we will have to lower the loan interest rate. Once it is lowered, it will be a surrender to the bears, and the international hot money will lose its last sense of awe."

"I support raising the short-term loan interest rate, but it can't be too high. It is enough to raise it to between 20% and 23%. If it is not a last resort, it cannot exceed 23%!"

...

Around this countermeasure, everyone keeps arguing with each other, trying to persuade the other side, and at the same time being persuaded.

In the end, it was agreed that interest rate leverage could be used, but the short-term lending rate was increased by one-third, from 14.745% to 22.117%.

At the same time, the attitude of continuing to raise interest rates in the future is retained. Whether or not to use it depends on the situation.

After discussing two suitable measures, everyone immediately discussed the next measure.

The previous two measures, one is to raise foreign exchange in US dollars to strengthen itself, and the other is to raise short-term loan interest rates to weaken the enemy.

But if you want to get through this crisis, the key is to be self-confident.

What can give confidence is naturally a pocket with enough drums!

"I recommend borrowing immediately from other countries and the World Bank, especially the UK and New Zealand. The UK is our suzerain, and our financial markets are breached, which will have a huge impact on the sterling system, and a lot of British capital investment in our Australia will depreciate ."

"And New Zealand has a high integration rate with our financial market. Once we are unlucky, New Zealand will definitely be affected. We use this reason to let the government persuade New Zealand to intervene in the Australian dollar spot market and stabilize the Australian dollar exchange rate."

"I also agree that we must borrow at least $15 billion in funds, otherwise it will be difficult to resist the attack of the bears, and the speed must be absolutely fast, and the publicity must be in place, so that the bears can retreat."

"..."

PS: The second one is a bit later, my back hurts, go to bed, good night everyone

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