To ensure the effectiveness of this measure, the Thai government also used mandatory administrative orders to cut off the possibility of foreign investors borrowing Thai baht from local banks.
As a result, even if speculators had previously borrowed Thai baht from local banks, they would no longer be able to borrow short-term loans from local banks and would have to borrow Thai baht from foreign banks that had Thai baht business at high interbank lending rates.
This invisibly increased their costs by more than ten times.
One reason Robertson was so enraged was that Tiger Fund was a typical victim in this incident.
How much have we lost in the futures market?
Although Robertson was furious, he had no choice but to swallow his anger, since his opponent was a country's central bank.
In addition to borrowing Thai baht, Tiger Fund, like most hedge funds that short the Thai baht, also opened a large number of short positions in the Thai baht-to-dollar exchange rate contract.
The losses this time mainly stemmed from this aspect.
“20 million dollars,” a Belgian young man named Kyle replied dejectedly.
He is currently an analyst at Tiger Fund specializing in Asian markets. In this attack on the Thai baht, Tiger Fund shorted a total of 600 Thai baht short contracts in the Singapore, London, and Chicago markets.
This strong rebound of the Thai baht not only wiped out all their previous profits, but also cost them dearly.
Kyle glanced at Robertson very cautiously and whispered, "Should we concede and leave now?"
“No!” Robertson shook his head firmly, gritting his teeth, “Not only will we not leave now, but we will continue to increase our short selling efforts. I will keep going until Thailand announces its surrender.”
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