Chapter 336 The Fall of the Korean Won

  Accurately speaking, the South Korean won’s exchange rate system is not a fixed exchange rate system in the traditional sense, and there is no limit point that forces the Bank of Korea to save it. However, since the beginning of this year, the South Korean won has depreciated by more than 20%. This rate has put the Bank of Korea under pressure, so it has to choose to rescue the market.

   It’s just that they overestimated their abilities, thinking that as long as they made a move, they could slow down or stop the continued decline of the Korean won. Unexpectedly, they fell into the trap of international hot money. These capitals who are afraid of chaos in the world hope that the Bank of Korea can take the initiative to show up, and then destroy the current Korean currency system in one fell swoop through either a small knife or a thunderbolt.

   Now, their goal seems to have been achieved.

  Although the financial reform plan discussed by the South Korean National Assembly today does not involve too much content in the foreign exchange market, the market is still keenly aware of the connection. In any case, this bill aimed at the financial system will inevitably affect the performance of the Korean won in the foreign exchange market, but the party who hopes that the bill can be passed wants to take this opportunity to give the Korean won a breathing space, while the opposing party advocates Let go of exchange rate controls completely and find other ways to solve today's predicament.

In fact, even if the bill can be passed smoothly, the Bank of Korea has no more foreign exchange reserves to intervene in the market. intervene.

  Pu Xilai knew this well, and all the rumors released before were to confuse the other party, but it was a pity that there was a **** lurking beside him, leaking all his old books.

Since the South Korean parliament voted on the 17th to deny the South Korean government's reform plan to take over the financial industry, Park Hee-rae and officials from the Finance and Economics Agency began urgent negotiations, intending to expand the fluctuation range of the Korean won from the current 2.25% to 10%. %, their internal estimate is that within two days, the won will be devalued in one go, so that the impact can be reduced as much as possible, which will help them gain more time to deal with it.

  …

   "What? That kid didn't sell Korean won?"

Hong Kong, Tianyu Fund headquarters, Zhong Shi is listening to Andrew's work report. Now that the Korean won is about to depreciate, he is in a good mood and can't help humming "Under the Lion Rock". However, his good mood didn't last long, so he listened to Received a news that made him extremely angry.

   Li Zehai, who had originally reached an agreement with him, did not sell Korean won spot in the market as promised, which made him extremely annoyed. Because he knew how awesome this kid would be in the future, Zhong Shi didn't hesitate to leave some good fortune now. Who wouldn't want this kid to be so **** up, he promised on the surface and then backtracked behind his back.

"Since he missed this opportunity, it means that he doesn't cherish this opportunity. To be honest, I really didn't expect such a scene. Andrew, are you sure this news is reliable?" After being annoyed for a long time, Zhong Shi fell down. Sitting on the sofa chair, he kept shaking his head and sighing, and he didn't know whether he was lamenting that he didn't know people well or that the other party was too stupid.

With an expression of sympathy, Andrew said angrily: "The news is absolutely true. I just met that kid Liu Lunxiong today. This guy is from their circle. I heard from Li Zehai himself. It is said that he is still in that kid The circle laughs at you!"

  Liu Lunxiong was shot while lying down. He was a famous "stock market sniper", and he became a so-called "boy" in Andrew's mouth. If it spread, it would definitely be regarded as a joke.

"Really?" Zhong Shi looked at Andrew suspiciously, and found that his expression was serious, and he didn't seem to be talking nonsense. He frowned subconsciously and said, "No way? Li's family style is not bad, how could he say that?" Such words?"

"Nothing is impossible!" Andrew continued to add fuel to prove that he was not talking nonsense, "Liu Lunxiong said, you are not well-known in their circle, and not many people have heard of it, so these people don't care about you. The suggestion was dubious, and Li Zehai couldn't make up his mind, and finally let it go."

Zhong Shi nodded. What he said was somewhat credible. He still understood the reason behind it, and he shook his head, driving these messy thoughts out of his mind, and said, "Liu Lunxiong? Interesting guy? Since he told you so, I wonder what he wants?"

  As a person who didn't even have a relationship with him, but deliberately revealed such a news, if it was said to be for no reason, I'm afraid even a fool would not believe it. As for Liu Lunxiong's reason for coming, Zhong Shi naturally wanted to ask clearly, he didn't want to accept such a favor for no reason.

"Zhong Sheng, you are amazing!" Andrew gave a thumbs up and praised, and then said mysteriously, "This Liu Lunxiong suffered heavy losses in the previous stock market crash, and it is said that someone is going to buy his listed company now. He's short on cash right now, he's running out of cash, so he's in dire need of money to defend the company right now."

"Could it be possible for me to help him?" Hearing this, Zhong Shi frowned, and said with some displeasure, "What kind of listed company does he own, and how much capital does he need? I'm not very interested in ordinary companies. Well, Andrew, you are fully responsible for this matter, and 100 million U.S. dollars should be enough, right?"

There was a wry smile on Andrew's face, and after being speechless for a while, he said helplessly: "Zhong Sheng, you think too much. Liu Lunxiong just wants to use our shareholder wind to make some capital, and has no intention of asking us for help." Meaning. And even if we are willing to help him, he would not dare to say this easily!"

"Uh...why is that?" Zhong Shi thought for a while, then slapped his head and said, "It turns out that's the case. He was afraid of driving tigers to devour wolves, so he came up with a more ruthless one. If that's the case, how much has he sold now?" The Korean won in the position should have earned a lot by now, right?"

Andrew took the opportunity to say: "It's not much. According to his own account, during this period of time he sold a short position of about 50 billion won, which is about 400 million Hong Kong dollars. It's just that he doesn't know anything about foreign exchange, so I don't know when to cut the position and when to close the position. I think the reason why he revealed the news about Li Zehai is that he wants us to help him at a critical time."

Zhong Shi nodded, and said with a smile: "This guy is very smart. This time he bet right. You tell him later, if you can sell short, you should try to sell short, and you must fill your position in the next two days. As for When to close the position, I will tell him as soon as there is any movement from my side, it will take two or three months at most, and he will definitely not regret this investment by then."

After thinking for a while, Zhong Shi went on to say: "In addition, you are responsible for letting out the news that South Korea has run out of ammunition and food, and is about to stop supporting the Korean won in the foreign exchange market. The era of the Korean won's sharp drop is coming. The specific balance The position of the position remains to be seen, we will no longer provide relevant information here, if they feel that they have reached their psychological price, they can close their positions at any time."

   "Okay!" Andrew agreed happily, and went out with a smile on his face.

  …

  After urgent consultations, the Bank of Korea finally reached an agreement with the Finance and Economics Institute and decided to increase the floating range of the Korean won to 10% per day. In fact, it allows the Korean won to float freely in the foreign exchange market.

When the entire market learned of the setback of South Korea’s financial reform plan on the 18th, and the Bank of Korea’s announcement to increase the volatility of the Korean won, the Korean won immediately fell again, from 1008.60 won to 1 US dollar on the previous trading day to 1012.80 to 1 US dollar. The level of the Korean won.

  The Kim Young-sam government replaced his economic team on the 19th. Deputy Prime Minister Jiang Qingzhi resigned and the former Minister of Trade, Industry and Energy Lim Chang-yeol took over his position. Kang Kyung-sik is considered a scapegoat for the Kim Young-sam government to be responsible for the current economic situation, but no one is pitying him anymore.

Park Xilai is also very busy recently. On the one hand, he wants to borrow up to 30 billion US dollars of loans from Japan. This part of the loan is used to cope with short-term foreign debts. The two sides are negotiating urgently. When the government has no other actions, The Bank of Korea can only achieve salvation through its own actions. On the other hand, he frequently appeared in various financial media, and loudly suggested that the government should borrow at least US$40 billion from the International Monetary Fund to alleviate the current financial crisis facing South Korea.

  But Lim Chang-yeol, the new deputy prime minister and director of the Institute of Finance and Economics, obviously does not think so. He publicly declared that South Korea does not need to seek assistance from the International Monetary Fund, because the Republic of Korea has the ability to solve this crisis by itself. However, he also stressed that South Korea is willing to receive policy support from the International Monetary Fund. It means that it is enough for you to give us spiritual support, and material support is not rare for us.

  In addition to blatantly antagonizing the central bank governor, Lim Chang-yeol also expressed the hope that international financial institutions can extend the short-term foreign debt of Korean companies, because as long as the Korean financial system has sufficient liquidity, the current financial crisis can be resolved.

Behind the wrangling between the two sides, the actual fuse is what Kim Dae-jung, the presidential candidate of the New Politics National Assembly Party, said in the National Assembly. On the issue of coming to power, the two sides naturally refused to give in, and the Korean won became a victim among them.

  The finance minister and the central bank governor, who are in charge of the two major policies, blatantly sing the opposite, naturally causing great confusion in the market, and investors have lost confidence in this, and do not know what to do. On the 19th, due to the uncertain outlook of South Korea's policy and the serious trend of internal strife, the Korean won fell sharply in the foreign exchange market. It fell directly from yesterday's average price to the limit, setting a new annual low of 1035.50 won to 1 US dollar. .

On November 20, the Korean won continued to fall, and it fell to the stop position in just one hour. 1139 won was exchanged for 1 US dollar, setting a new annual low. In this week, the Korean won has fallen by 13%, approaching the previous year. sum.

   In the midst of internal strife, the Korean financial crisis broke out in an all-round way!

   Thanks to book friend laujacky for voting for monthly support!

  

  

  (end of this chapter)