Chapter 0056 - Currency Wars 1
For the arrival of the other four great gods, Qiao Tianyu did not expect it.
Originally, he agreed with Junji Sato that he would come over by himself and jointly launch a fatal blow to Mexico, but he didn't expect him to stay behind.
Of course, Qiao Tianyu is not alone, today Goldman Sachs trader George, Da Mo Investment President Rubin, and Lehman Brothers' new executive vice president of investment Dawson are also present.
Seeing Junji Sato arrive, Rubin couldn't help but rush up and beat up that dog's day, but was stopped by Qiao Tianyu.
Previously, Qiao Tianyu assured Rubin that today would definitely make Junji Sato pay the most painful price!
The first step is capital verification.
On Qiao Tianyu's side, the three major investment banks borrowed a total of 9 billion Mexican pesos, equivalent to 2.6 billion US dollars.
And Junji Sato, four hedge funds plus Sato, brought in a total of 13.9 billion Mexican pesos, equivalent to $4 billion.
In fact, the combined number of Mexican pesos held by these two parties is only 12.9 billion yuan, which is equivalent to only 6.6 billion US dollars.
It's nothing compared to a country's sovereign currency, which can easily issue trillions of dollars, but it's enough.
This is because it is impossible for international hedge funds to directly defeat a country's powerful central bank with their own funds throughout the currency wars.
All they did was launch an attack on a country's currency with their own funds, which quickly attracted the attention of market panic and trillions of huge international hot money.
Once panic forms, foreign investors will sell the country's currency and exchange it for dollars to flee the country in order to stop losses.
And the huge international hot money will also see the opportunity to participate in the short selling of the country's currency, thus completely defeating the country's central bank.
So what Qiao Tianyu has to do today is to ignite the battle for the Mexican peso, and then he only needs to watch the performances of foreign investors and international hot money.
The second step is task assignment.
To Qiao Tianyu's great surprise, there were five ace traders and investment directors of the three major investment banks present today, but everyone unanimously recommended Qiao Tianyu as the chief trader, and even Junji Sato did not raise any objections.
However, Qiao Tianyu quickly figured out that this was another small calculation by Junji Sato.
Although he was bound to capture the Mexican peso today, the financial battlefield is changing rapidly, and no one can guarantee that he will win, so Junji Sato has left behind.
He first asked Qiao Tianyu's side to throw away all the pesos, and then waited and saw what happened.
If the situation is good and the market panic starts to form, he plays his own side of the peso again, otherwise he quickly withdraws and stays out of the situation.
This goddamn thing, there are so many crooked eyes!
The third step is to report market intelligence.
In this case, all parties have made full preparations, and everyone's information is not much different.
In recent years, Mexico's economy has been highly externalized, the economy mainly relies on foreign trade imports and exports, the financial market is highly open, and a large amount of foreign capital has poured in.
As of now, Mexico has about $257 billion in foreign investment, most of which is held in short-term speculative securities.
In principle, after the market panic is formed after a while, these foreign investors will become Qiao Tianyu's shells.
The Bank of Mexico holds a serious shortage of foreign exchange reserves, only about $17 billion, according to data released at the beginning of the month.
This amount is far below the level of $100 billion to $150 billion, which is considered the safest way to maintain a fixed exchange rate.
This also means that if Qiao Tianyu and them launch an attack on the Mexican peso, they only need to consume $17 billion in foreign exchange reserves to break Mexico's fixed exchange rate system and cause the exchange rate to plummet.
Seriously, now is the best way to attack the Mexican peso!
Step 4: Get Started!
Qiao Tianyu's Zero Point Fund is set up in accordance with the highest standards at present, the infrastructure is quite complete, and everyone present has been allocated trading seats and can conduct trading operations.
According to the agreement, Qiao Tianyu issued trading instructions, and the ace traders completed the trading operations.
"Let's get started!"
After everyone sat down, Qiao Tianyu settled down and began to issue trading instructions.
First-hand, throw stones and ask for directions!
"George, Goldman Sachs trading seats, zero point fund trading account funds, foreign exchange market, 1: 3.63, 1 billion pesos, smash!"
It is important to know that the central exchange rate of Mexico's fixed exchange rate at this time is 3.45, and the allowable fluctuation range is plus or minus 5%.
In other words, if the peso exchange rate fluctuates within the normal range of 3.28-3.62, Mexico does not need to intervene.
And Qiao Tianyu's first move pulled the peso exchange rate away from the lowest line by 1:3.63!
"Okay!" George immediately took the order, and at the same time gave the Goldman Sachs trading seat a trade order through the headset and the operating system.
The first 1 billion pesos were smashed out first.
1 billion pesos, at an exchange rate of 1:3.63, is equivalent to 280 million US dollars smashed into it at one time.
Everyone present was staring at the broader market of the foreign exchange market, observing the market reaction to the 1 billion pesos.
As a result, as soon as the 1 billion pesos were smashed, the Central Bank of Mexico --- the Bank of Mexico quickly entered the market and ate it, without the slightest hesitation!
This is also the Bank of Mexico is announcing to the world with practical actions that their foreign exchange reserves are sufficient, and they will not refuse to come!
The second step is to attack in the vanguard.
"Hard enough!" Qiao Tianyu smashed his mouth and immediately launched the next attack.
"Uncle Rubin, Da Mo trading seat, zero point fund trading account funds, foreign exchange market, two-minute interval, cycle to open positions four times, 1 billion pesos each time, 1:3.63, smash!"
As soon as Qiao Tianyu said this, the scene was in an uproar, and everyone cast surprised glances at Qiao Tianyu--- so fierce?
"Listen to me, smash!" Qiao Tianyu's tone was firm and unquestionable.
He is also using his practical actions to show everyone his confidence and determination to win the Mexican peso today.
"Okay!" Seeing Qiao Tianyu's resolute attitude, Rubin immediately issued a trading order.
Sure enough, these four huge orders were smashed one after another, and they really got results.
When the first two sell orders went down, the Bank of Mexico did not hesitate at all, and opened its bloody mouth and immediately ate it.
However, when the third sell order fell, the Bank of Mexico paused for a minute and ate it anyway.
When the fourth sell order went down, the Bank of Mexico apparently paused for another five minutes, but still ate it.
"There's a door!"
Seeing the reaction of the Bank of Mexico, everyone's faces softened slightly.
You must know that the foreign exchange reserves of the whole of Mexico are only 17 billion US dollars, and in just ten minutes, 1.38 billion US dollars have been consumed.
And Qiao Tianyu's crazy smashing behavior also quickly resonated.
The foreign exchange market began to see several small sell orders, apparently by financial vultures with a keen sense of smell......