Similar scenarios were playing out on the same day, with hedge funds shorting the Thai baht and foreign exchange trading departments of commercial banks also experiencing similar situations.
Almost everyone who shorted the Thai baht realized that if the baht didn't collapse completely in the next day or two, they would have a hard time maintaining their current positions.
For example, take Tiger Fund's $2 billion position. After the overnight interbank lending rate was raised, the interest they would have to pay every day would be an astronomical figure.
If the timeframe is prolonged, even without any further action from the Thai side, they themselves will be financially ruined by the so-called overnight interbank lending rate.
In this situation, fighting with their backs against the wall and launching a desperate counterattack became the choice for most short-selling hedge funds and commercial banks.
In fact, the Thai side was also aware of this situation.
At this moment, there was no joy in the team that had held onto the Thai baht. Almost everyone realized that the real battle between the bulls and bears would take place in the next one or two trading days, or even a week.
Punitive measures such as raising overnight interbank lending rates and banning local bank lending are only temporary solutions and do not address the root cause.
"Okay, okay, thank you so much this time!"
In the governor's office, Malaga had just spoken with the Singapore Monetary Authority, and the conversation was nearing its end.
Since Thailand announced its crackdown on international speculative capital, bullish investors across the market have been energized and seem to have regained their confidence to continue fighting hedge funds.
The Singapore Monetary Authority (SMMA), with its extensive experience, immediately alerted BOT to the potential backlash from international investment institutions and brought with it up to $8 billion in capital assistance, preparing to intervene in the market in conjunction with Thailand at the crucial final moment.
Singaporean authorities are well aware that once Thailand succumbs to pressure and announces that the Thai baht is abandoning its fixed exchange rate, Singapore will likely become the next target of international speculative capital.
They are not unaware of the principle that if the lips are gone, the teeth will be cold.
Singapore, which aspires to become a world financial center, is far more open in the financial sector than Thailand is now.
For example, the series of countermeasures that Thailand is currently implementing are something the Singaporean government probably cannot do. If they did, they would be labeled as intervening in the market, which would contradict their initial strategy of becoming a world financial center.
The best outcome now would be to force international investment capital to retreat empty-handed, or even suffer heavy losses in the Thai financial arena, before they can succeed. At that point, even if hedge funds still want to short the Singapore dollar, it won't be so easy.
On this day, Singapore also actively intervened in the market, but the majority of the sell orders were absorbed by Thai banks. Singaporean authorities estimated that BOT's funds might be insufficient, and Singapore's intervention at this time was undoubtedly a timely and much-needed boost.
really--
After hearing about the amount of money involved in the investment over the phone, Malaga was overjoyed and repeatedly expressed his gratitude, almost to the point of hugging and kissing him, completely disregarding the fact that they were on the same level.
......
Hong Kong.
Outside, the weather was sunny and peaceful, but inside the offshore company, the traders and operators had gloomy faces, looking as if they had lost their parents.
Looking at the dejected crowd, Chen Dong smiled and asked, "So, how were your profits?"
"Boss, stop teasing us. Given the situation last night, it would be good enough if we could even keep the unrealized profits. There was no way we could make any real profit."
Wangcai, like a defeated rooster, lowered his proud head.
Just a few days ago, Wangcai asked Chen Dong if he could increase his efforts and follow the main air force into the market. At that time, Chen Dong told him four words: "Know when to stop."
Wangcai heard these words, but he didn't really understand them.
What he took to heart was that he didn't use Chen Dong's funds, but instead used the dividends and bonuses he had received over the years.
What they didn't listen to was that not only Wangcai, but other traders and operators also chose to follow suit, investing all their hard-earned money from the past few years.
I thought it would be like before, as long as the funds followed, I could make a fortune. Who would have thought that a black swan event would occur.
The two announcements from the Thai government authorities not only dealt a heavy blow to short-selling hedge funds and the foreign exchange departments of commercial banks, but also caused significant losses to the employees of offshore companies.
Wangcai looked at Chen Dong with some doubt. Did the boss already know that a black swan event would happen?
"I made a profit."
Just when everyone thought that all the funds invested had been wiped out and none of them had made a profit, a sudden voice rang out.
Chen Dong recognized him; he was Xiang Huasheng, Xiang Huaqiang's younger brother. It was Xiang Huaqiang who brought him to him, saying that his younger brother wanted to learn some investment skills from him.
However, Chen Dong didn't have that much time to personally instruct him, so he could only entrust him to Wangcai for care.
Unexpectedly, in just a few years, Xiang Huasheng has grown into a very successful person.
Chen Dong couldn't help but look at him with newfound respect, and asked with a smile, "What's the rate of return?"
Upon hearing that someone had actually made money against the trend, everyone's eyes turned to Xiang Huasheng. Among them was Lu Dachui, who had been responsible for mentoring him for a period of time.
Xiang Huasheng looked a little embarrassed upon hearing this, and held up three fingers, saying, "Only thirty percent."
"How much? How could you possibly earn so much?"
Lu Dachui looked completely incredulous.
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