The current deposit interest rate offered by Thai banks is 11%. In other words, if you deposit 10,000 baht, you will receive 10,000 baht back after one year, including principal and interest.

This interest rate is undeniably high; at the same time, it was more than double that of the United States. However, due to the continued bearish outlook for the Thai baht in the futures and forward foreign exchange markets, even further interest rate increases could not attract the repatriation of US dollar capital.

Moreover, interest rates are primarily geared towards domestic market liquidity. Central banks generally cannot frequently change this data unless faced with inflation, requiring measures to curb excessively high domestic commodity prices, in which case they would raise deposit rates from their original levels.

Simply put, when there is more money in the market but the quantity of goods remains the same, the prices of these goods will rise accordingly, effectively raising prices to cope with the excess money supply. This is what we commonly call inflation.

If the flow of money into the market is tightened, the amount of money available in the market will decrease, and the prices of corresponding goods will naturally fall. The usual method is to raise bank deposit interest rates, commonly known as raising interest rates.

When Malaga rattled off a whole bunch of technical jargon, Number Two was completely bewildered and confused, but he finally understood that Malaga was subtly telling him that interest rates should not be raised.

Compared to the political pressure from other Southeast Asian countries and regions, the number two was more concerned about the domestic economic situation. He asked reluctantly, "Even so, isn't there any better way?"

"I'm sorry, there really is no other way but to abandon the existing exchange rate peg to the US dollar and let the Thai baht float in accordance with market forces."

Malaga gave a wry smile, practically pointing his finger at Number Two and saying, "What the hell are you thinking? Right now, the only way out is to devalue the Thai baht."

"Let me think about it some more!" Number Two's voice sounded completely calm, and no one knew what he was thinking. After saying that, he hung up the phone.

Malaga gave a wry smile, then his expression froze, instantly shifting from blankness to terror, and finally to surprise.

He suddenly realized an even more serious problem.

Foreign exchange swap transactions.

This refers to a foreign exchange transaction in which a foreign exchange trader simultaneously buys or sells a certain amount of a certain currency with a certain term, and sells or buys the same amount of the same currency with a different term.

In simple terms, foreign exchange transactions involve the exchange of two currencies. However, when cross-border trade is involved, the risks associated with foreign exchange must be considered. It's unacceptable to buy an apple for 5 baht, only to have it become worthless before it even reaches your home country – who can argue with that?

Foreign exchange swap transactions are financial derivatives created to meet this demand. Just like when you buy a car, you need to buy insurance, which is perfectly reasonable.

But that's precisely where the problem lies.

Savvy capital doesn't just involve the physical exchange of two currencies; it also incorporates a credit element. This is somewhat similar to borrowing money through an insurance policy, repaying it when no longer needed, with three parties providing the backing: the insurance company, the policy itself, and personal assets.

Foreign exchange swaps have a similar function, namely, releasing funds through foreign exchange swaps to create a false boom with a large influx of capital. When the bubble bursts, the loans are withdrawn. In this way, a large amount of foreign exchange reserves will be consumed in the short term, thereby threatening the entire foreign exchange system.

Simply put, it involves using fictitious trade to conduct foreign exchange swap transactions with foreign financial institutions, thereby circumventing the supervision of Thai banks and obtaining huge sums of money.

Didn't your Thai government cut off banks from lending to foreign companies? Fine, I'll bypass you and use foreign exchange swaps to create fake trade orders, thereby obtaining a large amount of Thai baht, and then sell these baht to obtain US dollars.

The lost US dollars were actually part of the Thai government's foreign exchange reserves.

From a policy perspective, they only falsified the trade orders, but successfully evaded regulation and obtained funds, and even bypassed the overnight offshore bank interest rate, making it a completely risk-free business.

"My God, if all of this was a pre-planned script, then this currency attack launched by hedge funds is probably just the beginning of a whole conspiracy."

Malaga couldn't hide his shock. It sounded unbelievable and like a fantasy, but in fact, the ending had been carefully planned long ago.

The reason for doing this is to reap the wealth that Thailand has accumulated over the past few decades.

......

London.

An underground city.

The place has been hollowed out, surrounded by thick reinforced concrete. The interior is divided into multiple areas, complete with air and water circulation systems, as well as the world's top equipment and instruments. Its defenses are comparable to a doomsday fortress.

This is the headquarters of the Freemasons.

It has existed for hundreds of years, and the people living here are dressed in the style of the last Middle Ages.

The round table conference is taken from the Twelve Knights of the Round Table.

It signifies mutual help and also symbolizes hope.

Now, this conference has evolved into a terrifying conference that controls the entire world and even all of humanity.

Every order issued from here has the potential to affect the lives of tens or even millions of people.

At this moment, a roundtable discussion is underway.

"Your Excellency, colleagues, we have been working on the strategic layout of emerging economies in Southeast Asia for many years."

“We use various methods such as quantitative easing, excessive money printing, and interest rate cuts to channel the world’s major currency, the US dollar, into these emerging markets. After being converted into local currencies, this money will enter local stock markets, real estate, and other high-yield sectors.”

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