After that, the peso rose slightly, reaching 5.06 to 1 US dollar on September 2, but this did not last long.
Entering September, the peso continued its downward trend, falling to 5.25 pesos to 1 US dollar on September 18.
The free-floating Mexican peso has had a significant impact on South America, with stock market indices in countries such as Brazil, Chile, Argentina, and Peru showing disappointing performance.
As of now, Argentina has fallen 6.5%, Chile has fallen 4.3%, and Brazil has fallen 6.8%.
The Mexican stock market fared even worse, falling by more than 19%, which triggered a sustained panic among foreign investors who continuously sold off their shares, further contributing to the market's decline.
Chen Dong instructed Wangcai to buy a large amount of pesos on September 13, not because he thought the price had reached its lowest point, but because the United States, the IMF, the Bank for International Settlements, and Latin American countries had all expressed their willingness to help Mexico repay its debts and support the peso. Several governments and organizations had invested a total of $52 billion to support Mexico.
Although these measures could not stop the stock market decline in the short term, they brought a glimmer of hope to Mexico.
Compared to the previous exchange rate of 3.88 pesos to 1 US dollar, Chen Dong purchased pesos for 6.249 billion yuan. After repaying the 6 billion yuan loan, he had an additional 2.477 billion US dollars in his account.
After Mexican bank interest rates rose sharply, Chen Dong paid an additional $18 million in loan interest, and in the process, he made a total profit of $1.4 billion.
And this is just the appetizer!
......
Continue read on readnovelmtl.com
