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February 1987. Novel＊┡

The seven finance ministers and central bank governors of the United States, the United Kingdom, France, Germany, Japan, Canada, and Italy reached an agreement at the Louvre in Paris to take joint measures to strengthen close coordination and cooperation in domestic macro policies and foreign exchange market interventions to Stop the decline in the value of the US dollar and maintain the basic stability of the US dollar exchange rate.

After the Plaza Accord, despite the substantial depreciation of the US dollar against non-US dollar currencies such as the Japanese yen, the US government failed to take effective measures to improve its own financial situation. It didn't shrink in the slightest, but continued to deteriorate.

The U.S. trade deficit last year reached $168 billion, or 3.6 percent of GDP, with three-quarters of the deficit coming from current-account surpluses in Japan and West Germany. The deterioration of the U.S. trade balance and the sharp increase in foreign debt have affected the inflow of foreign capital to the U.S., the market’s confidence in the U.S. dollar has declined, and continued depreciation of the U.S. dollar has obviously done more harm than good. The U.S. trade friction with Japan and West Germany has intensified again.

At the same time, affected by the appreciation of the yen and the mark, the foreign trade exports of Japan and West Germany declined, and the economic growth rate declined. The economic growth rate of Japan dropped from 4.2 percent in 1985 to 3.1 percent in 1986, and the economic growth rate of West Germany remained constant from 1985 to 1987. hovering around two percent. Japan and West Germany have expressed dissatisfaction with the U.S. failure to effectively cut the fiscal deficit as agreed in the Plaza Accord.

In addition, the sharp and rapid devaluation of the US dollar has also caused great shocks in the international foreign exchange market and the world economy. Major industrialized countries clearly feel that they must stop the decline of the US dollar as soon as possible and keep the US dollar exchange rate basically stable, which is conducive to the common development of all countries in the world.

actually--

The United States can also choose to raise domestic interest rates to attract international capital inflows and slow down the excessive depreciation of the dollar. However, the United States is reluctant to raise domestic interest rates for fear that this will cause a domestic economic depression. Instead, it prefers Japan and West Germany to lower interest rates.

Under the leadership of the United States, in order to stabilize the international foreign exchange market, prevent the excessive and rapid decline of the dollar exchange rate, and solve the policy problems faced by the developed countries through international coordination, the finance ministers of the g7 countries and the central bank governors reached an agreement at the Louvre in Paris. It is agreed that the G7 countries should strengthen "close coordination and cooperation" in both domestic macro policies and foreign exchange market intervention, and maintain the basic stability of the US dollar exchange rate at the current level.

The agreement at this meeting is known as the "Louvre Agreement" in history.

One of the purposes of the signing of the Louvre Agreement is to suppress the growth of the exchange rate between the yen and the mark and the dollar.

Honestly -

From this purpose alone, the Louvre Agreement is clearly a failure - in the last life, the Japanese yen did not rise until 1990 before it began to fall back.

but--

It cannot be said that the Louvre Agreement has no effect on foreign exchange speculators-before the Louvre Agreement was signed, under the leadership of g5, the currency markets around the world were selling dollars, as long as they had Japanese yen or marks in their hands You don't have to worry about not being able to exchange dollars. Now, although it is also possible to exchange dollars, it is not realistic, at least not easy, to exchange for dollars in large quantities after the wave of selling dollars is over. All in all, it is far more difficult to escape now than before the Louvre agreement was signed.

but--

All of this has nothing to do with Xu Cun - because before the Louvre agreement was signed, Xu Cun had completely escaped. Now, in addition to double the necessary yen reserves, Xu Cun's yen has been digested.

In this battle, Xu Cun also made loans from Citibank, Mitsubishi Bank, Mitsui Bank, and the Central Bank, and Xu Cun also made a net profit of more than 33 billion US dollars.

And then the egg--

Xu Cun bought Standard Chartered Bank for a total of more than 13 billion US dollars, and spent another 1.5 billion US dollars to consolidate the equity of Standard Bank.

In addition, Xu Cun invested 20 billion Hong Kong dollars (2.56 billion U.S. dollars) in the Shekou Industrial Zone, and spent 1.05 billion U.S. dollars to buy the entire Husky Energy.

All these are nothing. Xu Cun, a tyrant, has spent 15 billion US dollars to buy 1,200 tons of gold from the precious metal market. At present, among these 1,200 tons of gold, five One hundred tons are stored in the vault under Baye Building, two hundred tons are stored in the hidden treasury on Necker Island, two hundred tons are stored in the treasury of Shek O Manor, and two hundred tons are stored in Beijing Baicunju. In the vault, there are one hundred tons stored in a hidden vault on Musa Island.

You know, as the old banknote bank in Hong Kong, HSBC and the original Standard Chartered Bank together only hold more than 100 tons of gold in Hong Kong (Standard Chartered Bank only holds less than 30 tons).

Of course, it's not that HSBC and the original Standard Chartered Bank can't reserve more gold, but they prefer to reserve foreign exchange rather than a large amount of gold:

First, as the world's largest gold import port - influenced by the Chinese people's preference for gold jewelry, since the 1980s, Hong Kong has imported 100 to 200 to 300 tons of gold for consumption almost every year. Therefore, as long as there is money, it is very easy to buy and sell gold in Hong Kong. There is no need for HSBC and the original Standard Chartered Bank to deposit a lot of gold.

Second, after the failure of gold speculation in the 1960s and 1970s, few private banks other than central banks have eaten large amounts of gold for value preservation.

Again, with the development of the banking industry, gold trading is far less convenient than foreign exchange.

As for why Xu Cun has such a large reserve of gold, there are his own reasons:

First ~lightnovelpub.net~ Xu Cun burns a lot of money, he can't put all the more than ten billion dollars in the bank to sleep forever?

Secondly, the current price of gold is almost the lowest in history - the average price of gold purchased by Xu Cun is less than $320 per ounce.

Once again, Xu Cun, who holds the two major banks of Baye and Standard Chartered, has these 1,200 tons of gold, and he can arbitrarily transfer the deposits of the two major banks, Baye and Standard Chartered, and no longer have to worry about accounting issues. The property is mortgaged to its own bank—convenient.

Thirdly, Xu Cun is also planning to buy this gold, which will be of great use to him in the future.

All in all, after painstaking management, Baye Bank and Standard Chartered Bank have become the wealth engines of Xu Cun - Xu Cun has already possessed the ability to mobilize a huge amount of funds in a very short period of time.

Moreover, if Baye Bank and Standard Chartered Bank are fully merged to integrate the resources of the two banks, Xu Cun's wealth engine's ability to mobilize funds will definitely be stronger!

...

(To be continued.)