“TF？”

"How is that possible?"

Although there is some psychological preparation for such situations, when it does happen, only people in the industry know what it means.

The arbitrage range has not narrowed, which means that the funds have not washed out the exposure.

According to the process, as long as any arbitrage space is too large, it will be collided by arbitrage funds.

For example, the difference between the onshore and offshore exchange rates of RMB reveals the cost of RMB flowing into China from abroad, so offshore RMB is usually "cheaper" than onshore RMB, which involves many issues.

As far as the yen system is concerned, it has relatively few controls, and it is almost arbitrarily exchanged and spended, but if the amount is large, it needs to go through the procedure, and it will also directly affect the exchange rate, and the problem comes.

If there is an infinite amount of yen borrowed and an infinite number of dollars lent, the interest margin exposure will be closed, and the market will adjust the difference by itself.

But the beauty of financial markets is that arbitrage also requires risk, and if the yen appreciates and the dollar depreciates, the interest rate differential is not enough to offset the loss on the exchange rate, it is a loss of money.

What is the arbitrage space for the yen now? The basis between the United States and Japan is 57 basis points, and the interest rate differential between the United States and Japan for the three-month period is almost 80 basis points, which adds up to 137 basis points, or 1.37 percent, and the US-Japan currency swap agreement is a little more than 100 billion US dollars, and the basis roughly comes from here.

Then, large institutions can directly do these arbitrage work, and they can make profits without risk.

In other words, if you lend dollars and borrow yen, you earn 1.37% a year for nothing, so why didn't you close your exposure......? Many yen in the system are willing to lend and exchange, who is it?

The holders of the yen are Japanese companies, institutions, and even the Bank of Japan and the authorities, and from the root analysis, if there is always room for arbitrage, there must be enough yen to be dismantled, which means ...... There is a place to "release water".

"Japan's remittance data is going to rise?

"Institutional admission?"

"It's interesting. ”

In the conference room, no matter who it was, they quickly sorted things out, and there was a sense of ...... Interesting taste.

Now that the financial assets of the yen are in the hands of other entry institutions, then in order to prevent the risk of depreciation of the yen, what the entry institutions will do is hedging or ...... Investment.

The Japanese authorities have adopted a strategy of active depreciation of the yen, and institutions and people who hold the yen can maintain their value through countless methods, and they can directly sell short, which is also to promote the depreciation of the yen, and there is a very interesting place and a place to make money.

For example, if you think that the yen is going to depreciate, then you use the yen in your hand to buy houses and assets, and once the yen depreciates, your assets will rise in a trend.

If the price rises by a magnitude greater than the currency depreciation, then it is possible to get out of it at any time and make a profit, and this is what the Japanese institutions that "let the water out" want to happen.

Whoever dares to ask for yen, Japanese institutions dare to give, and not only that, but they are also willing to take the risk of the arbitrage range, in order to force the entry institutions to participate in economic activities after holding the yen.

As long as the economy comes up, everything will come back, and all links will be buttoned up, and everyone will actually have the possibility of cooperating to make money together.

However, finance is a battlefield, and the North American institutions, European institutions, and the Central Bank of China are not vegetarians, they also have their own positions, and everyone will be stupid to exchange dollars for yen and then help Japan invigorate its economy, and in the end? When the yen system grows and Japan's economy rises, what good do other institutions have? Just make money? What are you kidding, we are so poor that we only have money left.

The goal of financial institutions with political background has never been to make money, but to help the economy of the host country while plundering the right to speak in the market.

So to sum up, this is a war, Japan "released water", other institutions swallowed yen, and everyone gambled on their courage.

"Objectively speaking, Japan can release unlimited yen, but they don't dare, if other institutions take unlimited yen, Japan will gradually lose the right to speak in the system, although ...... They have already lost a lot, and they have no chance to threaten the position of the dollar. Wang Nuo's mind formed a chain of analysis.

This matter is easier to understand, just like the renminbi, the central bank of China wants everyone to use the renminbi, but does not want the renminbi assets to be held indefinitely, if the renminbi assets are held by other institutions for a certain proportion, what will happen? The answer is that the central bank's control over the renminbi will decline.

Taking the yen as an example, if other institutions enter the market too strongly and absorb unlimited yen-type financial assets, the Japanese authorities will need to look at everyone's face if they want to promote the depreciation or appreciation of the yen in the future.

I sell a large number of yen assets at one time to make you feel happy; or I just buy all the yen in the range you want to depreciate, I see if you can depreciate it, and you inject water again? I buy it again, I just buy it, I just buy it, as long as the arbitrage space is still there, I keep the value of the yen, I buy and buy, do you accept it?

If Japan dares to exchange a large amount of yen for dollars in the hands of other institutions, it can theoretically inject unlimited water into the market, but the increase in foreign exchange reserve data will make the yen appreciate, which is contrary to their desire to stimulate the economy.

If other institutions follow the path that the Japanese authorities want to take, they will certainly make money, and it is very likely that it will be smooth sailing, which is essentially equivalent to taking the US dollars to Japan first, and then exchanging the earned yen for US dollars after a period of time, in addition to interest, there is also a profit.

If everyone chooses the path of cooperation, it is likely that the yen will continue to depreciate, but it will be a trend, not a straight line like the previous days, and then ...... Japan's economy is recovering.

If institutions choose to take over the yen, stubbornly hold on to yen-type financial assets, and control the appreciation of the yen while earning interest rate differentials and interest rate differentials, they are directly enemies of the Japanese authorities, and they are fighting for strength.

You throw 100 million, I buy 100 million, you throw 1 billion, I buy 1 billion, you throw 10 billion, 100 billion, I buy, the opportunities are innumerable, there are two main ways, like the Central Bank of China, a foreign institution in Japan, will choose to help the yen depreciate or strongly intervene in the yen and let it appreciate?

The answer seems to be easy to guess, but it is only convincing.

Wang Nuo seems to have seen the swords and swords in the international financial market, and at this moment, the financial institutions of various countries must be using the vertical and horizontal cooperation to fly, right?

Green, Jonas, Meng Han, Lu Jianming and others, who also smelled the smell of gunsmoke, were a little frightened when they looked at Wang Nuo, because ...... The market that Wang Nuo wants to see has emerged.

Both the Japanese authorities and the international financial institutions have opened their mouths wide open, with state forces and predators entering the market, others fishing in troubled waters, and the market in chaos, which is strictly speaking, a financial war.