Reborn American Giants

Victor now holds a total of nearly 2 billion US dollars in cash. Of course, this money is completely clean and can withstand any investigation.

However, this money seems to be a lot, but compared with what Victor is going to do next, it seems a little insufficient.

The first is the refinery being built in Acajutla. This is the top priority of Victor's plan, so Bento, the head of Fandino Construction Company, was moved to Acajutla by Victor and is personally responsible for the refinery.

Construction work.

And in order to speed up the progress, some important core equipment needs to be installed in advance along with the construction of the factory, so a batch of important equipment has begun to be shipped from the United States. For this reason, Victor needs to pay Texaco and Exxon the first batch.

Around US$700 million.

Then there is Green Bay Venture Capital Bank. As a commercial bank with dual identities of both a traditional bank and a venture capital institution, it is considered a new thing for the El Salvador government.

They are not clear about the risks and benefits of this kind of financial institution that can not only absorb savings deposits but also conduct financial risk investments, so they are also unsure about Green Bay Investment Bank.

Although with Victor's public relations, the government approved the Green Bay Investment Bank's license, they are not hopelessly stupid.

Out of concern for the stability of unclear things, the government also made another resolution while approving the establishment of the Green Bay Venture Capital Bank.

That is, in order to improve the macro-prudential management framework, prevent macro-financial risks, and promote the healthy development of financial institutions, the Central Bank of El Salvador, which is responsible for supervising the domestic financial market in El Salvador, decided to impose a 30% high-risk margin on Green Bay Bank (ordinary banks

It is 20% reserve).

Especially for the U.S. dollar foreign exchange business that El Salvador is in urgent need of, according to regulations, Green Bay Bank's forward foreign exchange sales business is calculated in U.S. dollars, and a large amount of foreign exchange risk reserves are deposited, and non-U.S. dollar currency business is converted into U.S. dollars and deposited.

.

The conversion rates between various currencies are calculated in accordance with the "Conversion Rates of Various Currencies to the U.S. Dollar" published by the Administration of Foreign Exchange of the Central Bank. If the conversion rate is not announced, the general conversion rate in the international market shall be followed.

At the same time, the central bank assesses the foreign exchange risk margin of Green Bay Bank on a monthly basis. Green Bay Bank should transfer the foreign exchange risk margin to the special foreign exchange risk margin account established at the Central Bank of El Salvador before the 15th of each month.

This part of the funds is still in the special foreign exchange risk margin account of the Central Bank of El Salvador and has a one-year freezing period. At the same time, the interest rate is zero.

Finally, there is the arms trade business planned by Garcia, which is also a place that requires large sums of money.

Therefore, this money seems to be a lot, but when you spend it, it is like running water, and it is all gone in the blink of an eye.

But now in El Salvador, the principle of reciprocity prevails.

Human beings have realized division of labor and exchanged different products and services. The "reputation network that must repay debts" has allowed human society to develop. Human society has gained a lot of competitive advantages from the principle of reciprocity. Therefore, human beings must ensure that every member is assimilated

.

Benefits must be repaid, which is a natural "axiom" among people.

As long as this money is spent, it will inevitably produce corresponding "influence".

Politicians use influence to win elections, businessmen use influence to sell goods, and salesmen use influence to entice you to obediently hand over your money.

Even your friends and family will use their influence on you without knowing it, and Victor uses this to gain corresponding influence and achieve his own goals with the help of these large amounts of money.

Therefore, in addition to greeting Maduro during Victor's meeting this time, as El Salvador's domestic financial regulator, Green Bay Bank's subsequent move to sell colones in exchange for U.S. dollars must not be hidden from the central bank's foreign exchange regulatory department.

"Can I ask, where do you plan to use this money?" Maduro took the initiative to pour red wine into the tall glass in front of Victor. After Victor signaled that it was enough, he stopped pouring the bottle.

He pushed the cup in front of Victor, and the smile on his face was squeezed into wrinkles.

When Maduro heard that Victor was making big moves, he actually complained a little in his heart.

As the governor of the Central Bank of El Salvador, although the government has no hard requirements on Maduro in terms of business, the current domestic economy in El Salvador is not good. The civil war has affected the export of foreign trade products such as coffee, resulting in a reduction in foreign exchange income. The international dollar

Universal hard currency will not be enough for the El Salvadoran government now or in the future.

Therefore, in addition to implementing the old-fashioned financial system of "margin", the Central Bank of El Salvador has also formulated another set of rules. That is, the inflow and outflow of large amounts of foreign exchange must be communicated with the central bank in advance, especially when withdrawing.

Without advance notice, the central bank has the right to refuse a customer's application to withdraw a large amount of foreign exchange, even if the money does not belong to the central bank's account.

If Victor's money does not eventually come back, then it is conceivable that Maduro's year-end review evaluation will not be very good, and it is very likely that he will lose his lucrative position as central bank governor.

Because he caused the government to lose a large amount of valuable foreign exchange cash. Yes, it was a loss, nothing else.

The foreign exchange cash held by the central bank is deposited in the bank by others. Although it does not belong to the bank, the money will not sit there in vain, but will be used by the bank for other investments or loans.

Suddenly, Victor needs to withdraw a large amount of US dollars in cash, which leads to a result.

It means that the central bank has to temporarily shelve a certain project at a certain place and time. For this reason, the bank not only loses a large amount of US dollar cash, but also loses a part of the foreseeable "profit" in the future.

Since there is a loss, there will naturally be someone responsible. And who is this person in charge? There is no doubt that it is him, Maduro Cavizon, the president of the Central Bank of El Salvador.

If this money is invested in domestic investment activities in El Salvador, then Maduro's life may be much easier, and it is likely to be just a verbal criticism. So he needs to figure this out.

Victor had nothing to hide and said it bluntly, "Maduro, I won't hide it from you. The recent battle between the Independence Palace and the National Assembly Palace has caused a series of very bad effects.

Perhaps these things may be insignificant to the gentlemen on the stage. But for a little person like me, this is a big matter related to wealth and wealth. I must protect my own assets.

, and the assets of other investors who trust me are safe and responsible.

I judge that Colon will suffer further heavy losses in the future. In order to ensure that the wealth in my name does not shrink, I will make a series of investments, acquire some high-quality companies, purchase some real estate and commercial land, and add some investment to my assets.

assets to preserve their value.”

Maduro nodded in agreement. Affected by the political turmoil, as soon as the financial market opened on Monday, the Colon exchange rate began to drop significantly. From the exchange rate with the US dollar of 0.1242, which had finally stabilized, it dropped to

It dropped to 0.1022. This is equivalent to the fact that the original Colon with a face value of 1,000 could be exchanged for 124 US dollars, but now it can only be exchanged for 102.2 US dollars. The wealth of ordinary Salvadoran people has shrunk by 14.8% in an instant.

By nine o'clock on Tuesday morning, all the morning papers were screaming about the challenges facing Jose Napoleon Duarte. El Salvador's economic freedom index, a proxy for prosperity, had dropped by sixty-three points, and by lunchtime it had dropped again.

Forty-four points.

Financiers don't like such "surprises."