A short-selling quota of $20 billion, plus a 17% exchange rate difference, equals a profit of $3 billion, all of which happened overnight.
If Chen Dong buys back Thai baht at market price to close his position now, he will earn at least $2.8 billion. Of course, this is not all; it's only the first day, and the Thai baht's exchange rate against the US dollar is still falling and has not stabilized. If he waits a few more days, the exchange rate will likely be different.
Then, Wangcai asked, "Boss, should we close out our positions in the market now and start targeting other countries' currencies, or should we wait?"
"Don't rush!" Chen Dong took a sip of the coffee his assistant had just brought and continued, "We haven't reached the maximum profit yet, and besides, the timing isn't right."
"Boss, what price do you think would be appropriate to sell it for?" Wangcai thought for a moment and decided to first probe Chen Dong's bottom line so that he could find the right opportunity to act later.
"30%, that's my assessment."
hiss--
Wangcai gasped. Although there had been discussions before, theoretically, if Thailand announced a devaluation, the Thai baht would depreciate by 20% to 30% against the US dollar, but this was only a theoretical figure.
Chen Dong patted him on the shoulder, “30% is indeed the theoretical limit, but think about it. Now that Thailand has announced the devaluation of the baht, it will have a comprehensive impact on the Thai economy. Not to mention anything else, just those companies that have borrowed in other currencies have seen their debt increase by 17% overnight. How can they survive? Even worse are those companies that have borrowed in yen. The yen is constantly rising against the dollar. Under this double pressure, I'm afraid the increase in debt for these companies will be far more than 17%.”
"Faced with this situation, these companies will inevitably go bankrupt, and what can the Thai government do? What if export growth doesn't keep pace with the rate of currency depreciation?"
"In order to save the real economy, the only way for the BOT is to increase the money supply. However, once the BOT increases the money supply and it circulates in the market, it will cause inflation. In other words, it will not only fail to solve the current problem, but will also exacerbate the problem, plunging the entire Thai economy into a quagmire. It may even trigger a large-scale financial recession."
At this point, Chen Dong snorted coldly and said with certainty, "Do you still think that what I said about 30% is an exaggeration?"
Hearing Chen Dong's words, Wangcai also felt that the profit-sharing arrangement made sense. However, he still said, "If the Thai government chooses to ignore corporate bankruptcies or takes other strong measures to prevent this from happening, I'm afraid we will find it difficult to achieve our current profits."
"Don't worry, once the economic measures are implemented, it will take at least two or three months to see results. And that's just the short term. If it's the long term, it could take a year or even several years."
Chen Dong put down his coffee and gave Wangcai his final instructions: "I'm leaving this place to you. If anything happens, just call me."
"Okay, boss, I'll take good care of the place."
Chen Dong nodded again, and then quickly left under the protection of Wolong and other bodyguards.
......
Huaxia Star.
After leaving the offshore company, Chen Dong went directly to Huaxia Star.
During this period, although he was in Hong Kong, he did not contact the outside world, including people close to him such as Vivian Chow. He was almost fully involved in the Thai baht short-selling plan.
Now that the Thai government has finally announced the official devaluation of the baht, Chen Dong's first plan has come to an end, and it's time to move on to the second step.
The CEO's office.
When Zhou Huimin saw Chen Dong, her eyes were red and her voice sounded a little hoarse, "Husband."
"Let me take a good look at you. You seem to have lost a lot of weight since I last saw you. Have you not been eating properly?" Chen Dong pulled her into his arms, feeling the changes in her.
A few minutes later.
Zhou Huimin blushed slightly and pushed Chen Dong away, scolding him angrily, "You haven't even called in so long! I thought something had happened to you. Do you know how worried I was?"
As she spoke, tears streamed down her face, quickly forming a thin stream. Chen Dong felt a pang of heartache seeing this, and he tried to comfort her with kind words and promises, coaxing her for quite a while before Zhou Huimin finally stopped crying and started to smile.
How's things at the company lately?
Zhou Huimin pursed her lips and said, "There haven't been many changes. I've been preparing to shoot a few movies this year, but compared to before, there are far fewer people watching them. I don't know if it's because of the quality of the movies or something else."
Hearing this, Chen Dong understood perfectly.
He had previously selected a large number of scripts for Huaxia Star, and these scripts were all wildly popular movies in later generations, so there was no question of them being bad movies.
If fewer people are going to the movies now, there's only one possibility: an economic crisis is coming.
Since the attack on the Thai baht, Southeast Asian countries and regions have been affected to varying degrees, primarily in the stock and foreign exchange markets, and secondarily in the real economy.
Ordinary people don't have much money, and basic living needs are essential, so where would they find extra money for entertainment and consumption?
Chen Dong offered a few words of comfort, explaining that he was not short of money and could, in fact, use relatively little to acquire some industries that would appreciate in value in the future during this crisis.
"Please sit here for a while. I need to talk to Brother Qiang about something."
"Hmm." Zhou Huimin nodded obediently upon hearing this, and then said, "How about I go to the market to buy a chicken first, and the soup will be ready by the time you come back?"
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