The International Investment Department, led by Yanisan, used US dollars as capital, thus it occupied a large amount of capital from the Mexican Development Bank.
This has led to constant friction between the International Investment Department and other departments within the bank, especially the Foreign Exchange Department, because the US dollar capital of the International Investment Department has prevented the Foreign Exchange Department from carrying out many of its tasks effectively.
Therefore, it's normal for Anisan to speak out against Juan.
The value of the Mexican peso is a matter of particular concern to the highest levels of government and is the focus of their debate.
But whether the peso appreciates or depreciates, Yanisan, as the head of the bank's investment department, doesn't care at all.
It all stemmed from the fact that his international investment department invested in US dollars.
On the contrary, Juan's foreign exchange department was the one concerned with exchange rate issues.
And since Yanisan had finally found an opportunity to strike at Juan, he naturally wouldn't miss it.
Seeing that Anisan and Juan were at odds again, the other department managers wisely kept quiet.
Although they also disapproved of Yanisan's words and actions, his outstanding performance made him a favorite of the higher-ups, so even if they wanted to say something, they didn't have much confidence.
"Most importantly, if we don't redeem our funds, our competitors will surpass us and even use this to damage our reputation. Maybe tomorrow someone in the market will say that we are short of funds and on the verge of bankruptcy. If this triggers panic among depositors and they all rush to withdraw their money, then we will really go bankrupt."
Anisan's words were very persuasive and sounded very reasonable; each word was like a knife or spear, piercing Juan's lungs.
As an opponent, Juan knew that there was a lot of exaggeration in Yanisan's words, but he also knew that he could not bear the blame for the bank's collapse.
He hesitated, as if he wanted to say something, but ultimately kept his mouth shut.
"Alright, stop now!" Bank President Hades interrupted Yanisan. "Then tell me, according to you, what would happen if the government suddenly announced a devaluation of the peso, and we didn't have enough dollars to exchange in the market?"
Hades had been watching the fight between his two subordinates all along, but he did not stop it.
As for the reasons, firstly, this is internal competition within the bank, which is beneficial to business operations. Secondly, regarding the current trend of the peso, Hades felt like he was sailing in a fog, unable to see clearly. All he could do was try to consider all aspects and take all possibilities into account in order to make the right decision, rather than favoring anyone.
Seeing that the meeting was about to go astray, Hades had no choice but to interrupt both sides and begin to seriously consider Yanisan's proposal.
Actually, this exchange was definitely necessary.
Even if the Mexican Development Bank doesn't take on this business, other commercial banks will. Because Mexico allows free currency convertibility, Hades still hopes to close the deal.
In fact, as the president of a large commercial bank, he is not only concerned with the profits from exchange rate differences and handling fees earned in actual operations, but also with balancing the bank's liquidity, risk and profitability. Only by doing well in all three aspects can a bank be considered excellent.
$300 million converted to pesos is more than $1 billion.
While this won't have a major impact on the liquidity of the Mexican Development Bank, it will still cause some obstacles.
There are no problems with the pesos, of course, but with the dollars, it means there will be a little trouble.
In addition, the Mexican Development Bank has also established several smaller branches in New Mexico, USA.
Although their performance and storage scale are small, they can use these branches to invest directly in the US capital market.
At the same time, these banks also joined the banking system of the United States in accordance with its laws.
What they need to do is report their positions and margin information to the Federal Reserve on a daily basis.
That's why Hades asked Yanisan for advice.
"There's no major problem with the dollar!" Yanisan said confidently in response to Hades' inquiry.
Hearing Anisan's reply, Hades finally made up his mind. He bent his middle finger and tapped the table with his knuckle, saying:
"In this way, although exchanging this sell order will have some impact on our dollar reserves, not exchanging it will directly affect our reputation in the foreign exchange market and cause a decline in our credit. So we still have to exchange it!"
The US dollars deposited in Mexico City were exchanged for pesos, which were mainly distributed in two ways: one was to the vaults of the banks that handled the exchange, and the other was to the accounts of Mexican banks.
Furthermore, over half of the US dollars were invested in short-term bonds. Many of these dollar-denominated bonds are held by Mexican banks. These banks can redeem the bonds not only using their own dollar accounts but also by selling them on the market.
Of course, the second method is rarely used because investing in bonds can earn interest, while directly exchanging for US dollars does not.
Aside from earning transaction fees, there's almost no other way to make money this way.
Similar discussions took place at several other large commercial banks, with similar conclusions reached by their executives. These banks viewed the current situation as an unexpected turn of events.
What no one expected was that in the following days, this "accident" happened again and again.
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