Reborn American Giants

Sitting on the sofa in the living room on the first floor of the villa, Victor was enjoying the breakfast that De Verti had carefully prepared for him, while he pricked his ears and listened to Nathan read to him the daily copy of the San Salvador Daily News that he had just received half an hour ago.

news topics.

To be honest, it's a pity that Nathan doesn't become a radio announcer. He has a nice voice. Although it seems a bit weird to read Spanish newspapers with American pronunciation, his phonetic symbols are accurate and his tone is still good.

It's cadenced and has a lively rhythm.

Today's "San Salvador Daily News" published by the San Salvador Daily News Agency is quite lively. Originally, the newspaper had four sixteen pages. Today, as a special issue, four more pages have been added for the economic section, which is full of

The hall is full of articles by commentators, excerpts from some foreign media and summaries of public opinion polls.

And almost all of these contents revolve around one core, which is the financial turmoil caused by the political turmoil in the Independence Palace.

"Colon falls, president in crisis!" This is the headline Nathan just read.

"... Various domestic financial institutions in El Salvador took the lead in selling the national currency, the Salvador Colon. Soon, the Central American market followed, and the El Salvador Colon continued to be under tremendous pressure. Foreign currency traders were worried about this and believed that

A series of crises over the Independence Palace could trigger a full-blown political crisis.

As soon as the market opened today, several other signatories to the Charter of the Organization of Central American States, including Guatemala, Costa Rica, Honduras and other countries, under the influence of the Independence Palace, announced their full support for El Salvador Colon. However, they could not stop the waves of

Despite a wave of panic selling, the Colon continued to fall and soon approached the minimum limit stipulated by the Organization of Central American States.

According to reports, a financial owner in Panama who holds a large amount of Colon is selling like crazy. The industry is very frightened and believes that in order to save the Salvador Colon, which was merged into the Colon, the only way to save it is to significantly increase the interest rate..."

"This is the first time we have encountered such a situation," this is the comment of a stock trader. "...The market is most afraid of uncertainty, but this morning it suffered ups and downs of turmoil. Several of my clients

Talking about, if the Independence Palace falls apart, how safe will the Central Bank of El Salvador be? At Christmas a few months ago, the atmosphere of this city was almost like a declining farm..."

Faced with this situation, the Central Bank of El Salvador, which is responsible for regulating the domestic financial order in El Salvador, is not sitting still. Two days ago, regarding the financial turmoil, economic malaise, government imbalances, and soaring fiscal deficit in El Salvador, the Central Bank’s Countermeasures Committee

A response plan was submitted to the Independence Palace.

In this plan, economists from the Countermeasures Committee of the Central Bank of El Salvador pointed out that the current situation of domestic asset flight from El Salvador is quite serious.

According to a survey of central bank data, the amount of capital outflows from Colon last month was as high as about 700 million US dollars. Now, in the first week of Jose's crisis, there are total outflows of no less than 400 million US dollars.

The value of the Salvadoran Colon flowed abroad. In the current financial market, most of the Salvadoran Colon sold by financial speculators flowed out of the hands of these people during this period.

Faced with this situation, experts from the Central Bank’s Countermeasures Committee pointed out that the large outflow of Colon in the short term indicates that investors are slowly losing confidence in domestic investment in El Salvador. In response, the Central Bank’s Countermeasures Committee requested the Independence Palace to authorize and allow

The central bank's policy committee took emergency measures to deal with the crisis.

In terms of response measures, the central bank's Countermeasures Committee proposed that the financial turmoil caused by the sell-off should be responded to from two aspects.

First, the Palace of Independence approved the Central Bank of El Salvador to increase the currency of Colon to a limited extent, using the national currency intervention policy to crush the source of the crisis that gradually began to form abroad due to the outflow of Colon, stabilize the domestic financial market, and fill the gap caused by the large-scale flight of Colon.

Shortage of domestic money market.

Second, further strengthen the central bank's financial supervision capabilities over various domestic financial institutions in El Salvador, and temporarily curb the two-way circulation of Colon currency internally and externally. When necessary, it can be used to strengthen the security of funds of various financial institutions.

Conducting a wide-ranging review to crack down on private financial institutions in El Salvador who sold the Colon.

When he first saw the report submitted to the Independence Hall by the central bank's policy committee, Victor felt that the economists within the central bank were quite capable.

Obviously, the current trends in financial markets have shown them the existence of this crisis, and at the same time, it has also made these economists understand that there are driving factors behind this crisis.

From an economic point of view, the amount of currency circulation in a country is constant within a certain period of time, and the right to adjust is in the hands of the central bank.

Once inflation occurs in the national economy, the central bank will initiate measures, issue policies, implement monetary tightening, increase the currency reserves in the central bank and increase bank deposit interest rates. The purpose is to artificially reduce entry

The amount of currency in circulation achieves the purpose of curbing inflation.

And now? The outbreak of this financial crisis has obviously had an impact on El Salvador's financial sector. The reason for its formation is that the domestic political turmoil in El Salvador has affected the confidence of financial investors.

This led to a "panic" selling behavior at home and abroad.

Under this circumstance, the two feasible methods submitted by the Central Bank's Countermeasures Committee can be said to be the most direct and effective means to deal with the crisis.

It is conceivable that once these two measures are implemented, although the crisis of Colon's loss cannot be easily solved, they can at least deal a heavy blow to those who instigated this conspiracy.

The increase in colon currency can effectively stabilize the domestic market that is somewhat turbulent due to the large outflow of currency, fill the currency shortage space caused by the loss of colon, and at the same time, it can also severely hit those currency speculators in the Central American financial markets.

They speculate on the Colon currency.

As for the situation that caused domestic inflation to rise further due to the increase in currency opening, we can't take care of it for the time being.

Strengthening financial controls and curbing the two-way circulation of colones internally and externally can turn the Salvadoran Colon currency hoarded by financial speculators into pieces of hot potato that cannot be let go, thereby making those leaders

The conspirators behind this "sell-off" are in a dilemma.

It is a pity that although the two suggestions put forward by the Central Bank of El Salvador are feasible, the Independence Palace at this time has completely lost its fighting spirit and even lost the sense of responsibility that the ruler itself should have.

Everyone knows that such core countermeasures involving national financial security must be kept strictly confidential.

However, Jose's so-called "democratic and enlightened" political reform actually reformed this most important part in a very democratic and enlightened way.

As soon as the Central Bank Countermeasure Committee's report was submitted, it appeared on Victor's desk the next day. Victor believed that others must be holding this report at this moment. Amfilo wanted to achieve his own goals and secretly used corresponding means.

Will definitely come soon.