"It's okay, I trust you!" Rubin patted Qiao Tianyu on the shoulder.

"Da Mo is an investment bank, and the SEC regulation is too strict to blatantly short the currency. ”

The SEC --- the U.S. Securities and Exchange Commission, which is responsible for supervising the securities market, protecting the interests of investors, and strictly supervising investment behavior in the financial market.

Its main regulatory targets are the major investment banks on Wall Street.

Let's first explain why you want to borrow pesos.

Throughout the currency wars waged by hedge funds over the years, the common denominator of the attacked currencies is the country's fixed exchange rate and the overvaluation of the currency.

As for the fixed exchange rate, it means that a country declares that its official exchange rate is fixed, and the real exchange rate can only fluctuate in a small range around the official exchange rate, such as 1%-5%.

In order to achieve certain policy goals, some countries tend to deliberately raise or depress the official exchange rate.

As a result, when the official exchange rate is inconsistent with the real exchange rate, the currency is overvalued or undervalued.

In order to maintain an abnormal official exchange rate, a country's monetary authority often uses its foreign exchange reserves to adjust the supply and demand of its own currency in the foreign exchange market.

This provides a basis for hedge funds to operate, and when international hedge funds see that a country has a fixed exchange rate system and the value of the currency is overvalued, they can start a currency war.

The main practice of these hedge funds is that they first borrow enough of the country's currency from major financial institutions or consortia, and then sell it off in the foreign exchange market.

In order to stabilize the exchange rate and maintain a fixed exchange rate, the country's monetary authorities can only use foreign exchange reserves in US dollars to eat these currencies in the foreign exchange market.

As a result, the country's foreign exchange reserves are dwindling in dollars, and hedge funds can borrow enough of the country's currency to deplete the country's foreign exchange reserves.

When the dollar is all depleted, if the country's currency continues to sell, the country's monetary authorities will no longer be able to buy it.

In the foreign exchange market, there was an oversupply of the country's currency, the value of the country's currency depreciated, and the monetary authorities were unable to maintain the fixed exchange rate system, so they had to abandon it and implement free floating exchange rates.

As a result, the country's currency is already overvalued, and coupled with the strong depreciation pressure in the foreign exchange market that exceeds demand, the country's exchange rate will inevitably fall sharply at the moment when the country's monetary authorities announce the implementation of a floating exchange rate.

After the country's currency exchange rate plummets, hedge funds buy back the depreciated currency at a low price with less U.S. dollars and return it to financial institutions or consortia, while the rest is the hedge fund's surplus.

This is a simplified version of the standard pattern for hedge funds to attack a country's currency.

In fact, whether it is Soros's Quantum Fund or Robertson's Tiger Fund, they have all used this routine to capture one sovereign currency after another, and they have tried and failed.

The pound crisis in 1992, the Mexican peso in 1994, the Asian financial crisis in 1997, etc., more and more countries are lying under this routine, although everyone knows this, but they can't prevent it.

Although Qiao Tianyu hated Junji Sato to the core, I have to say that Junji Sato got Qiao Tianyu's seven inches accurately, and if he controlled Lily, he completely controlled Qiao Tianyu.

Qiao Tianyu didn't dare to have any selfish thoughts, so he could only start preparing for the war honestly.

In order to be able to get enough ammunition support, Fuld and George were also mobilized by Qiao Tianyu.

Through their respective clients, they have tried every means to borrow Mexican pesos and inject them into the accounts of the Zero Point Fund.

And the news of the newly created Zero Point Fund borrowing Mexican pesos in a big way quickly caught the attention of financial vultures with a keen sense of smell.

They were already salivating over the Mexican peso, and they were ready to move, and they began to lay out openly and secretly.

Since returning to Huaxia, she has followed Qiao Tianyu's instructions and traveled among the senior management of China Energy International through Li Dahai, and has played a great role in promoting China Energy International's advance of funds for the western Mexico railway project.

On July 15, 1994, the day before China Energy International was listed on the New York Stock Exchange, the good news finally came.

The senior leaders of China and the leaders of Mexican transportation officially signed a contract in Mexico City.

China Energy International won the construction rights of the Western Mexico Railway Project, with a total investment of up to 56 billion US dollars, shocking the whole world.

This also means that Huaxia almost emptied its family funds in order to win the project, and advanced 30 billion US dollars for this project!

Qiao Tianyu is in Daha

jia

On the "road to fame", go further and further!

On July 16, 1994, China Energy International was successfully listed on the New York Stock Exchange, which was an important milestone.

For the first time, Huaxia enterprises went overseas to list and raise funds, which opened a new lane for the rapid development of Huaxia enterprises.

Of course, this also means that foreign investors can buy shares in Chinese enterprises by buying stocks, and China's national capital has been eroded by foreign capital--- which is a later story.

Blessed by the major good news the day before, at the beginning of the listing, Zhongneng International's shares were snapped up instantly, and the stock price soared all the way.

From the initial $12 per share, it soared to $22 in ten minutes, and the amount of financing reached 625 million US dollars!

The listing of Zhongneng International was a great success!

However, at the time when the whole country was celebrating the success of China Energy International in breaking the ice, at 10 o'clock in the morning, the new office space of Zero Point Fund, located not far from the New York Stock Exchange, welcomed five uninvited guests.

They are Stephen Green, General Manager of the Guide Fund, Yuichiro Takuya, President of Sakura Fund, Bruce Churchill, President of Maya Fund Management, Jawaharlal Nehru Sikh, General Manager of AXA Capital, and of course, Junji Sato.

At this time, these four hedge funds were not well-known, because they were all new funds like the Zero Fund, but the general managers of these four funds were very famous.

Together with Junji Sato, they also have another title, which is the third, fourth, fifth, seventh, and ninth place in the "Top 10 Most Profitable Traders on Wall Street in 1993"!

You must know that these five people are all well-known big names who can shake Wall Street, but they got together with Junji Sato.

It seems that they are all coming for the Mexican peso, and it is really not good!

It is estimated that this is what David said last week, and many excellent traders on Wall Street have jumped out to do it alone, referring to them!

Junji Sato, you're really well-intentioned!!