"Carrot Head, we need to have a large number of financial companies in the European market, London is the first stop, I want you to solve this matter first. ”

Finance company?

Robert John was a little confused.

The so-called financial company mainly refers to a short-term lending company, which can also be understood as a usury.

Of course, there is a difference between a formal financial company and a black loan shark. Commercial bank loans tend to place a high value on collateral, and without collateral, it is impossible to obtain a loan from a bank.

Money is something that everyone lacks.

If money is needed and because the collateral has a credit risk, the bank will raise the interest rate or cut off the loan according to the risk ratio, or the bank's credit loan needs to be used after maturity, but it must be repaid to perform before continuing to apply, at this time, the usefulness of the financial company is reflected.

You can lend money with better risk, and you can also help some loans to bridge over.

Many financial companies in Hong Kong have been doing an excellent job in this regard, and they have been very impressive with their high interest rates and leverage in operating financial products.

However, in recent years, the British economy has been sluggish, and the Bank of England has continued to implement a low interest rate policy, and the benchmark interest rate has been maintained at 2.2 percent.

"Boss. The Bank of England's benchmark interest rate has been maintained at 2.2 per cent, and the countries of the European Community have maintained the same interest rate, and I think it's not a good idea to open finance companies in Europe. ”

"NO, NO, turnip head, listen. When we open a financial company, we don't open a financial company, we just open a financial company, that's why we open a financial company. ”

“......”

Robert John is a China Teater.

However, Shen Jiannan's words were still full of confusion.

Glancing at his ex-wife's family not far away, Robert John said quietly.

"Boss. I don't understand what you're talking about. ”

"Carrot head. Rayson. The interest rate implemented by European countries has always been 2.2 percent. ”

"Death at night. With this kind of interest rate, there is no room for financial companies to survive at all. ”

"What if there is a country with very high interest rates and a fixed exchange rate?"

Robert John understood.

"Boss. You mean Thailand, oh God. Boss, you're such a genius. I didn't think of it. ”

"Understood?"

"Damn! I'm stupid. Oh my God, boss, we're going to get rich. ”

Holding the phone, Robert John shouted excitedly.

Previously, he had been in China, and as the head of Standard Chartered China, he was very aware of the exchange rate in the Asian market.

The currency of Thailand is the Thai Baht.

Before 1897, one baht was equal to 8 fuang, and one fuang was equal to 8 att. The current decimal system was established by King Rama V.

But before the 1940s, it was called Tical, and later it was renamed Baht. Originally, the baht was a unit of weight, equivalent to 15 grams, and since a tical was equivalent to 15 grams of silver, the baht was later simply used.

After the silver standard was broken in 1902, the baht was no longer pegged to sterling silver, as the price of silver depreciated sharply relative to the currency of the gold standard. On September 19 of that year, Thailand issued its first banknotes in denominations of 5, 10, 20, 100 and 1000 tical.

By 1963, the Thai government announced that the gold content of the Thai baht was 0.0427245 grams, and the official exchange rate was 20.80 baht for 1 US dollar, and the floating exchange rate was stopped.

However, with the collapse of the Brinsonton system and the depreciation of the US dollar, the Thai government announced that the Thai baht would be decoupled from the US dollar and pegged to a basket of currencies.

On November 5, 1984, the Thai baht depreciated by 14.8% and the official exchange rate was 27.15 baht per dollar, after which the baht appreciated.

But since 1985, Thailand's economy has miraculously grown, with a jaw-dropping growth rate, leaping to the top four tigers in Asia, and what is even more incredible is that Thailand's inflation rate has not been high, indicating that the fundamentals are very good, and there is still more space.

In order to leave room for the economy to operate when it is tired, and also to avoid excessive capital speculation, the Bank of Thailand has repeatedly raised interest rates, raising the benchmark interest rate to 6.8 percent.

The central bank changes the benchmark interest rate in order to leave room for maneuver in the economic fluctuation cycle, and the interest rate is raised because the economy is improving, curbing inflation and speculation, and leaving room for maneuverability when the economic cycle changes.

Just like the hole card, the higher the interest rate, the better the normal representative of the country's economy, leaving more room for maneuver, and the lower the interest rate, the smaller the room for maneuverability. Generally, when the central bank lowers the interest rate to 0, it means that a country has exhausted its cards and no longer has the ability to intervene, so it can only leave its fate to God.

The Bank of Thailand has raised interest rates continuously, which is nothing.

Thailand has become one of the Asian tigers, and its economic development level is showing signs of catching up with Hong Kong and Singapore, and raising interest rates to curb inflation and reduce speculative capital flows is the right thing to do.

However, at the end of 1990, the Thai government determined the circulation policy of free trading of the Thai baht in the global foreign exchange market, and adopted a fixed exchange rate system, so that the Thai baht was linked to the exchange rate of the US dollar, and the fixed exchange rate system of pegging the US dollar was implemented, 1 US dollar = 25.29 baht, and the exchange rate was limited to a floating range of 0.15% ~ 0.16%.

If all is so, there is no problem.

In 1991, the stock market plummeted, and then the real estate bubble burst, and a large number of capital fled from the market.

As the world's second largest economic system, the amount of capital precipitated in the market can be imagined, in order to strengthen the absorption of overseas capital, Thailand in May last year, the central bank announced that it will fully liberalize financial control, and will no longer intervene in the inflow of overseas funds.

In addition, the Thai government announced that Thailand has the information to build a fair and free financial center. In 1993, the financial sector will be fully liberalized, with approval for the establishment of an options financial center in Bangkok, relaxation of restrictions on foreign banks setting up branches in Thailand, and allowing international capital to trade in the Bangkok options financial center.

What does this mean?

This means that there will be no more intervention in the flow of funds into Thailand now.

However, Thailand implements a fixed exchange rate system pegged to the US dollar, and the interest rate is 6.8 percent, while the interest rate of the European Community countries is almost 2.2 percent.

Robert John was almost crazy with excitement.

"Boss. You're saying that we're going to borrow money from the big European banks and then to Thailand for arbitrage?"

Arbitrage?

Lao Tzu is such a useless person?

Holding the phone, Shen Jiannan couldn't help but hook his mouth.

Although you can make money by borrowing chickens to lay eggs, this money is nothing.

Calculate the time, the Wall Street gang is about to move towards the European Community, and when the time comes, it will be the most interesting to lend them money.

With a sinister smile on his teeth, Shen Jiannan praised.

"Old turnip head. Congratulations, you got it right. I'll rush over as soon as possible, and you need to build the financial company platform as soon as possible. ”

“.....”

Hanging up the phone, Robert John was still excited with excitement as he held the phone.

As a banker, he knows very well that risk is always proportional to returns, and in this world, there has never been a stable investment that will not lose money.

However, he suddenly realized that this law seemed to be about to be broken.

Thailand is a country, behind the major European banks, it is also a country, and there is no risk at all to take the money borrowed from this bank to arbitrage in Thailand.

"Praise be to God. Glory be with me. ”

Robert ..... Is that you?"