Amidst the fierce battle in the Thai baht market, some departments in the United States have become restless and publicly accused Thailand of manipulating its currency. Thailand has responded and expressed its confidence in stabilizing the exchange rate. The previously decided temporary measures, such as suspending some stock trading and port transactions, will be gradually lifted over the next two days.
At 9 a.m., Maha spoke with the US side by phone. After much communication, he hoped to reach a private settlement. Thailand knew that being too tough would not end well, so it quickly accepted the offer and agreed over the phone.
Lu Feng was still asleep, but his name had already resounded among the top financial executives in Europe and America. John also knew why Lu Feng never had a proper talk with him.
The domestic foreign affairs department will naturally say some nice things to the outside world, hoping that both sides will sit down and solve problems based on real needs, rather than adding to the problems, and that we are willing to provide a platform and opportunity for consultation between the two sides.
The day was chaotic. The west side vented its anger, the southeast side stood firm, and the east side uttered some trivial words. Only the retail investors stared blankly at their accounts.
As evening approached, Lu Feng finally woke up. After washing up, he stood at his doorstep, letting the sea breeze refresh him. It was already the end of December, and the weather in Shenzhen had cooled down. Before he knew it, another year had passed.
Duoduo came home with her schoolbag on her back. A little while after entering the house, she ran out with Lu Feng's phone and said, "Dad, you have a call!"
Lu Feng answered the phone, and Maha's assistant briefly explained the situation. They had also contacted several fund companies on Wall Street. Although they were still being stubborn, they were genuinely eager to resolve the issue.
They simply had US dollars but couldn't exchange them for Thai baht to cover their bank contracts. Their contracts expired in three days, on December 31st. The Thai side handed over this portion of the profits to Sean. The funds of both sides were roughly equal, and how much profit they squeezed out depended on them.
According to their plan, a 10% profit margin is the minimum. If they redeem at an exchange rate of 27 baht to one US dollar, Sean should have an 18% profit. Their main costs are concentrated between 30% and 33%. As for Lu Feng's portion, it will be retrieved through the foreign exchange market. Subsequently, there will be a stampede of redemptions from private equity firms and retail investors.
Don't be fooled by the current price of thirty yuan; it could easily rise to twenty-six or twenty-seven yuan, giving Lu Feng a return on investment of around fifty percent.
This can be considered a favor to Lu Feng. Sean also hopes to exchange it back through the market, but such a large amount of money would probably crash the Thai baht. Moreover, Soros and his ilk do not want to lose too much.
Lu Feng expressed his gratitude over the phone. After hanging up, he told Su Yourong and Zhenkun the news. The two of them regretted it so much that they kept slapping their thighs, their words full of remorse for not investing more money.
Lu Feng just smiled. During those suffocating few minutes last night, they definitely regretted it. That's how finance is. When you make money, you always feel like you didn't invest enough, and when you lose money, you regret it.
"Let me mention something else. Some retail investors and institutions have contracts with longer terms, some even expiring in a month. So you can sell some now, but wait a bit longer. The price should be higher, and it's not impossible for it to go back to twenty-five," Lu Feng said into the phone.
The person on the other end of the phone readily agreed, sounding much more relaxed. However, when the foreign exchange market opened at 8 p.m., both companies began to slowly sell off their shares, eventually dumping them all at a price of 29.5 yuan. They were worried that things might change if they waited too long.
Lu Feng wasn't too worried. He just called Manager Li and told him to pay attention to the contract period and transaction volume. He could sell at a price above 27 yuan, but all the shares had to be sold before January 20th.
In the evening, Jiang Xiaoyan faced a large pile of folders, seemingly busy with something. She rarely spoke at home these days, and she had lost a lot of weight; it was clear that the new factory was very demanding.
At nine o'clock in the evening, the phone in the living room rang. Lu Feng answered the phone and said, "Who is it?"
"Mr. Lu, it's me, John!" John's voice carried a hint of teasing. "Are you done with your work now? Can we talk?"
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