Chapter 911 – The Proud Thai Central Bank
It was what Feng Yu had expected. The Thai governnt does not have enough foreign reserves, and they still must keep a portion for other purposes. So, the Thai Governnt went to the Singapore Governnt to get a loan of 5 billion USD.
Coupled with the Thai Governnt’s 5 billion and the 2 billion USD earlier, they had used 12 billion USD to stop their currency from depreciating. The sudden additional 5 billion USD from the Singapore Governnt helped Thai Baht’s exchange rates increase rapidly.
Two days ago, the rates were 26.3:1, and it will reach 26:1 soon.
There is a sudden increase in demand for Thai Baht, but Soros and his n do not have enough Baht to dump.
Soros was panicking. Why did this happen? Why did Singapore suddenly get involved?
Thailand is an important trading partner in Singapore, and both countries’ governnts have good relationships.
There is another important reason. The Singapore governnt had found out that Soros had secretly built a Short position futures contract portfolio in Singapore.
The Singapore Governnt knew after Soros attacked Thailand, he will target Singapore next. If Soros had only targeted one country at a ti, we might not win. But he had attacked one country and plotted against another at once.
Singapore and Thailand governnts want to hit Soros and let him know that it is different now. It is not easy to manipulate a country’s currency now.
If Soros failed to take down the Thai Governnt, his reputation would be affected, and no one will follow his lead to attack another country’s currency.
Thailand and Singapore wanted to stop Soros and were confident that they would succeed.
……
The Governor of Thailand’s Central Bank was holding a press conference. “We are fighting to protect Thai Baht, and we will make those currency speculators pay!”
Who are the speculators? Everyone knew the answer.
The Governor of Thailand’s Central Bank imdiately beca the hero of all Thai. With 7 billion USD from their reserves, and Singapore’s 5 billion USD. Thai Baht will return to normal.
At the sa ti, Thailand’s stock market also started to recover. Everything seed to be developing, according to Thailand’s Governnt wishes.
But Feng Yu firmly believes that Thailand will lose this war!
First, the Thai Governnt has insufficient foreign reserves now. They have only around 20 billion USD in total, and Singapore had interfered to help them. Also, Soros was not prepared. He still has lots of funds not used in this war.
Another reason is Feng Yu had not participated. If Feng Yu had joined in, the Thai Governnt had to utilize all their foreign reserves to stabilize their currency.
Lastly, Feng Yu found out that the Thai Governnt had no more tricks up their sleeves. They had to spend a large amount of money to stabilize their property market too.
The financial crisis is happening, and the stock market had almost crashed. But Thailand’s property prices are still rising!
The Thai Governnt will not allow its property market to crash. Once their property market crash, it will be a repeat of Japan’s downfall.
That’s why the Thai Governnt will do all it takes to stop its stock market from crashing and, at the sa ti, stabilize its currency and property market. They still must stop foreign investors from pulling out their investnts from Thailand.
If it was only one or two problems, the Thai Governnt could solve it easily. But with all these problems happening at the sa ti, there is no way the Thai Governnt can handle it.
Also, Feng Yu could tell that the Thai Governnt is more concerned about their property market than Baht depreciating. That’s why they will use more of their funds in the property market.
Currently, the Thai Governnt had won, and the Thai Baht is rising steadily. It’s only a few days, and the rates had recovered to 25.7:1. It should recover back to 25:1 tomorrow.
To get to 25:1, Thailand and Singapore Governnt should have used up all their funds. This should be the best they can do, and Feng Yu felt the rates couldn’t return to 24:1!
……
Soros looks at the Thai Baht rising, but he did not feel any stress.
Soros had lost this ti. If Thai Baht returns to 25:1, his losses will be at least 400 million USD when he cancels his future contracts. The stock market is also slowly recovering, and the stock index is rising. His returns from his stocks futures are getting lesser.
Making use of the stock market and Forex is Soros’s tactics. If everything goes according to his plan, he will make money from both. But now, Soros could not take care of both markets and have suffered losses from the dumping of shares and currencies. He could not recover all his losses from the futures contracts!
The Thai Governnt had done well this ti, and had made Soros suffered more than 600 million USD losses! Soros was furious when he rembered Feng Yu withdrawing after making so profits!
Soros’s anger towards Feng Yu was more than the Thai Governnt and Thailand’s Central Bank Head.
The retaliation from the Thai Governnt and their Central Bank is normal, and Soros had expected it.
But Feng Yu’s sudden withdrawal was out of Soros’s expectation. If it weren’t for Feng Yu’s participation, Soros would have prepared more funds to deal with the Thai Governnt and might have won.
Soros would not be losing money if Feng Yu had not participated!
Soros had not thought that he also did not have any trust in Feng Yu. All this while, he had asked his n to monitor Feng Yu’s funds.
Both sides did not have trust in each other. How can they cooperate well?
“Boss, what should we do now? Are we continuing to borrow Baht to fight back, or…?” Drucken Miller asked.
Soros had discussed with his fund managers and agreed to continue to suppress Thai Baht while transferring funds from else while. At the sa ti, they will persuade Feng Yu to participate and continue to spread rumors.
But now, with Singapore entering the picture, Soros and his n could not carry on. The interest from borrowing Baht had increased their costs a lot, and they could not use the most convenient short-term lending as that will be like giving the Thai Governnt money.
Soros made a difficult decision. “Let’s stop. Cancel all the stocks future contracts first to stop lost and withdraw temporarily. Once all our funds are in, we will co back!”
Soros’s decision is admitting he had lost this war.
Drucken Miller wants to tell Soros that this loss will have a significant impact on their reputation. But he doesn’t know how to tell Soros. If they don’t admit defeat, their losses will increase!
……
The Governor of Thailand’s Central Bank was surrounded by reporters again. Thai Baht had returned to 25:1, and it was still climbing. Reaching 25:1 should not be a problem.
With Singapore’s help, they had won against Soros, and Soros had retreated!
“I had said that we would make those speculators lose all their money. Now, we had done it! No one can manipulate Thai Baht! No one can win mighty, Thailand!”
Soros threw the remote controller at the TV angrily. Crash! The expensive LCD TV’s screen cracked, and smoke ca out of it.
Want to let lose all my money? Fine! Let’s wait and see who will have the final laugh!
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