In this situation, BOT is probably the only company capable of quickly bringing the Thai baht exchange rate back up.
Everyone thought so, and Chen Dong was no exception.
"The price in the spot market has also gone up!"
Almost simultaneously, the trader responsible for monitoring the spot market also shouted it out.
The group switched the screen back to the spot market and found that the Thai baht, which had been falling, had risen by two basis points and was now quoted at 25.95, returning to the level before the decline.
"Guys, let's go! It's time for us to show our skills." Wangcai gave the order and added, "At the current price, as long as we buy low and sell high a few times, we can burn through a significant portion of the bot's funds."
"No!" Chen Dong stopped Wangcai in time when he gave the order, and said, "Let's set the price at 26 directly and let the market know my target. Let's not continue to entangle with the bot."
Upon hearing this, everyone, including Wangcai, was taken aback.
Normally, the strategy is to first deplete the opponent's manpower, and then break through the round number barrier when the opponent has no time to react or is unable to continue. This is what most traders have learned.
However, everything changed when it came to Chen Dong. He was going all in, selling off all his Thai baht and telling everyone that this was the effect he wanted. If they wanted to bring the value back to the limit, they either had to take his share or wait for the baht to depreciate; there was no other way.
Before Wangcai could say anything more, Chen Dong waved his hand and said, "There's no need to say anything. Just do as I say."
"Yes, boss!" Wangcai nodded, then ordered, "Did everyone hear what the boss just said? Let's get started!"
At the command, the traders all sprang into action.
On the charts, a massive sell order suddenly appeared at the 26 mark, leaving the BOT traders completely dumbfounded.
"How could this happen? Have they gone mad?"
"What are you waiting for? Take all these orders!"
"Yes!" As the orders were relayed, the traders inside the bot quickly issued instructions.
BOT President's Office.
"Governor, the situation is a bit bad right now. There are huge sell orders coming out of nowhere, and speculative capital from other countries has also started to move. The exchange rate of Thai baht in both spot and futures markets is being pushed to the 26 mark."
Although he knew this day would come, Malaga was still in a real bind.
International speculative capital suddenly launched a fierce attack, dumping large amounts of Thai baht in the spot and futures markets. Although the intensity and scale of the attack were far less than the first attack, it was only a matter of time. If the Thai baht exchange rate is not pushed up now, it will become the last straw that breaks the camel's back.
"Hold on, you must hold on. I'm reporting to Number Two right now, you go ahead!"
"It's the bank manager!"
As the trading administrator left, Malaga wiped the fine beads of sweat from his forehead. He knew better than anyone how much US dollar reserves Thailand still had.
If there are a few more attacks like the one we just saw, Thailand will definitely not be able to withstand the massive sell-off, and that will be the time when the Thai baht collapses across the board.
Although Thailand is a major exporter and enjoys a trade surplus in international trade, its standing currency reserves have always been very low because of net inflows every month.
But this situation also illustrates that the current situation is extremely critical, even to the point of being on the verge of collapse.
People are sometimes like this: once they realize that a certain outcome cannot be changed, they often choose to give up or accept reality. But very few people choose to struggle to the death, because in their hearts, since the outcome cannot be changed, why can't they accept reality?
Just like Malaga right now!
The call was answered quickly.
Malaga spoke into the microphone in a very calm tone: "Number Two, I'm afraid our foreign exchange reserves are no longer sufficient to support the fixed exchange rate system of the Thai baht."
This tone is as if stating something that has nothing to do with oneself.
In stark contrast to him, Number Two was immediately surprised upon hearing the news, and his tone even carried a hint of anger: "Tell me, what exactly happened? Didn't you tell me before that we could last at least another week?"
"Just two days ago, I confidently told the media that we were absolutely capable of stabilizing the current exchange rate of the Thai baht. Now you're suddenly telling me that we don't have enough foreign exchange reserves. Isn't that a slap in the face?"
"This is more than just slapping your face."
Hearing Number Two say this, Malaga felt a sense of helplessness. This was definitely not just a slap in the face for him alone; it also included him.
If there were any chance, Malaga would not have said such a thing, but it is the truth. It is also a fact that foreign exchange reserves are insufficient and that they cannot withstand attacks from international speculative capital.
"Second, I don't know what happened today, but the impact on the Thai exchange rate has suddenly intensified. At the current rate, it will be difficult for us to maintain our reserves for a week."
"I estimate that at most, it can only last until sunrise tomorrow."
Number Two remained silent.
He was already aware of the purpose of Malaga's call, but the Thai authorities had not yet made a final decision on whether to announce the Thai baht immediately.
After a long pause, Number Two sighed and said, "This matter requires time to make a final decision. I will immediately convene an emergency conference call. In the meantime, I hope you and the currency experts will stay in touch."
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