“The situation is very bad!” a cold voice replied almost without hesitation.
This is Thailand's newly appointed Minister of Finance. Although he has only been in office for a short time, he already has a thorough understanding of Thailand's economic situation.
After hearing the words of the newly appointed Minister of Finance, there was another gasp of surprise on the other end of the phone.
It was just a conference call, but it had a greater impact on everyone than the past decade combined.
Originally, issues concerning financial institutions were under the direct jurisdiction of the central bank, but because many financial institutions were on the verge of technical bankruptcy, the Ministry of Finance directly took over these assets.
They were given a certain timeframe to submit restructuring plans and divest themselves of non-performing assets, enabling these financial institutions to revitalize themselves in the shortest possible time through restructuring, mergers, and other means.
"What about the impact on the real economy?"
This is the question no one wants to answer, yet it's a topic no one can avoid. Chachai asked the question on behalf of Number Two, adding, "What I mean is, will there be a financial crisis? If that happens, it'll be bad."
Currency crises are somewhat manageable. As long as a financial crisis doesn't occur, a currency crisis can recover after a period of time, just like the recent severe blow the Russian currency suffered.
However, since there was no economic crisis in Russia, or rather, they had enough cards to play to weather this crisis, the Russian currency was able to recover in a short period of time.
However, once a financial crisis occurs, it means that the entire economic vitality, or the blood supply system, has encountered a major problem, which is extremely fatal.
"Tomorrow morning, Malaga and Hawadia, both of you come to my office. We'll discuss this issue." Then, Number Two called out the names of several other people, including tax experts, economic experts, and officials from the Ministry of Finance.
After the meeting.
Malaga had just returned to his office when he saw the middle-aged vice president storm in, cursing as he walked: "Who told you to close out your long positions in the European and American markets? Who gave you that authority? If you don't explain yourself clearly today, I will immediately report to Number Two and have you pack your bags and leave tomorrow."
Looking at the middle-aged man who resembled a clown, Malaga suddenly felt a pang of sadness. He leaned back on the sofa and said casually, "We no longer have US dollars in foreign exchange reserves, and we will soon announce that the Thai baht will enter a free-floating phase."
These words were like a bolt from the blue, instantly deflated the middle-aged man who had been so aggressive just a moment ago, ready to settle scores with Malaga.
His face, as white as paper, turned deathly pale in an instant, and his eyes widened like copper bells. He simply couldn't believe that what Malaga said could be true.
"How could this be? You must be lying to me, right?"
"Liar?" Malaga chuckled self-deprecatingly. "I wish this were just a dream, but unfortunately, it's real."
Upon hearing this, the middle-aged man stumbled back several steps, nearly falling over, muttering, "Fake, all fake..."
......
Hong Kong.
It was already late at night.
Inside the offshore company, not only were all the traders present, but Li Xiaoman also showed no sign of leaving.
As the moment drew closer, everyone looked tense, because the final moment Chen Dong had mentioned was fast approaching.
Just then.
The previously calm futures exchange rate market was suddenly hit by a massive sell-off of Thai baht, the size of which exceeded everyone's expectations. Almost instantly, the exchange rate dropped by several basis points.
"Look, it's finally here!" Chen Dong said with a big smile, as if he had expected this moment to happen.
Li Xiaoman and the others first looked at Chen Dong, then stared incredulously at the long red line on the board, as if telling everyone, "It's here, it's really here."
26.10.
26.20.
The numbers are still falling, and this is far from the end of the Thai baht's exchange rate against the US dollar.
At this point, the entire Thai baht market was in chaos. Almost all forex traders were closely watching the baht exchange rate fluctuations, and apart from the traders on the BOT, no one else knew exactly what was happening.
Why did the Thai baht break through the 26-dollar exchange rate? What happened? Why didn't the traders on the BOT intervene? The traders started asking around, wanting to know what had happened, because there was absolutely no information from either the fundamentals or the news; it was completely without warning.
For those shorting the Thai baht, this is a chance to make money. But for those arbitrageurs, this sudden drop is a nightmare, a bolt from the blue.
They initially believed that the entry price was low, representing a low-level entry point, and that the intervention of the bot provided a protective layer. They thought that as long as the bot intervened, they could profit from these short-term trades.
But no one expected that the Thai baht would actually fall, and even plummet.
Not far from the offshore company, in a brightly lit building, is the office of Sim's private equity fund, which is part of the short-term arbitrage funds.
"What exactly is going on?" Sim's eyes were bloodshot, his face contorted in rage, and he roared hysterically.
A handsome researcher said emotionlessly, "Since we're doing short-term trading, we need to be prepared to enter and exit quickly. Now that we're stuck, should we liquidate our positions or add to them? Sim, you decide!"
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