In December 1996, the Bank of Thailand was facing the pressure of the depreciation of the Thai baht, at that time the fundamentals of the financial market had deteriorated, various problems had arisen in the financial sector, and international capital, led by Soros, had released rumors in the market, and the news of the imminent depreciation of the Thai baht was flying all over the sky. Pen "Fun" Pavilion www.biquge.info

Fast forward to April, the gossip in the market is becoming more and more realistic, and the baht has depreciated slightly, but not on a large scale. The main reasons are: first, international speculators such as Soros shorted the Thai baht earned by the Thai stock market, and they needed to exchange it, and they did not want to depreciate too much, so they did not use too much force to attack the exchange rate in the early stage; Second, just as Hong Kong officially returned to China on July 1, 1997, and the Asian financial crisis broke out on July 2, there will be no lack of conspiracy.

The international capital, dominated by Soros, attacked the exchange rate of the Thai baht against the US dollar at that time, so it will definitely not be long before the outbreak was delayed until July, and there are many political factors. In the course of the international capital attack on the Hong Kong dollar in October, the Hong Kong dollar was able to survive without political factors. You must know that when Jiang Dada visited the United States after the Hong Kong dollar was attacked, the international capital led by Soros was defeated, and no one believes that there is no political deal.

In mid-February, the Bank of Thailand signaled that there was international capital sniping at the Thai baht, and combined with the Quantum Fund's advocacy in the U.S. news media that there was a problem with the financial system in Southeast Asia, the Quantum Fund had the reason for sniping the Mexican peso and the British pound, and it was not difficult to guess the strength of the enemy. So why hasn't the Thai government, the Ministry of Finance, or the central bank taken decisive measures?

Lim was the president of Bangkok Bank before becoming finance minister, and the Bank of Thailand's Bangkok International Banking Organisation (BIBF), which was promoted by the Bank of Thailand, and the local international banking institutions (PIBF) jointly control the central bank. If the Thai government and the central bank introduce measures such as raising the offshore lending rate, it will seriously damage the carry trade and self-interest of Thai banks.

Since Soros sniped Thailand, more than four months have made the Thai people miserable, and the Thai stock index has plummeted from the peak of more than 1,600 points a year ago to more than 700 points, a drop of at least half. The loss of national wealth has been enormous, and now the streets are full of protests and demonstrations of people who have been sold by the stock market, selling cars, houses, and losing their jobs, and there are several demonstrations against the government every hour.

The Thai government and the central bank had to pull on the courage to actively resist the financial crisis. Thailand, one of the four Asian tigers who have no money, has asked for the four tigers, and the foreign exchange reserves of each country are at least twice as much as Thailand's.

The Thai government is now glad that the central banks of Southeast Asian countries held a meeting in Bangkok, Thailand, in mid-February to discuss currency speculation in the region, and agreed in principle on the funds available in the event of a financial crisis.

Malaka never expected that just two months after the meeting, Thailand would come to the door.

Bangkok, Central Bank of Thailand Conference Room.

The president of the bank is poor. Malaja is holding a conference call with his allies to discuss how to join forces to face the impact of international financial institutions on the Thai baht.

The number of participants in this meeting is all guys who have to stomp their feet and tremble in Southeast Asia, but listening to the voices of a few people is enough to imagine the sad faces of several bigwigs.

"What's the situation with your financial sector?" The question was asked by the chairman of the Monetary Authority of Singapore, Gao Shengming, although he had already decided that he would not give much support, but the form and procedure still had to be followed.

In addition to Singapore, central banks in Southeast Asia are focusing their attention on the Thai baht. They know very well that if the baht does not resist, then the next one will be one of them, or all of them.

The officials of these central banks are well aware of the enormous harm caused by international funds, especially hot money led by hedge funds. As far away as the whole of Europe, nearly two years ago in South America, these tragic scenes are still vivid, but they did not expect that these scenes would come to Southeast Asia so soon.

Singapore and Hong Kong currency issuance model is similar, the right to issue currency in the hands of some large banks, any issuing bank to issue currency needs to pay the corresponding US dollar foreign exchange to the Monetary Authority of Singapore, plus Singapore is a famous free port, the domestic currency issuance rights, bank maximum holding restrictions and other measures have long been gone, what can the West get from Singapore?

Singapore is a small country, and the demand for currency is not large, and there are not many Singapore dollars that can be borrowed in the market. The Monetary Authority of Singapore, with its foreign exchange reserves of more than US$80 billion, will certainly be able to cope with the shock of international capital.

"I have discussed this issue with Mr. Prime Minister and the Minister of Finance, and a new policy will be introduced soon to further raise the margin for bad debts of banks!" Malaka swore by it.

Currently, Thailand's entire financial sector has at least 1.8 trillion baht of bad debts. It's just terrible, and of course the Malagars won't tell the truth, but only explain the Bank of Thailand's response from the other side.

As we all know, Thailand's current economic situation is not very good, and it is rumored that its banking system and financial companies are in extremely bad condition, and there are even rumors that some of Thailand's large banks are on the verge of bankruptcy.

Not long ago, Moody's, a well-known rating agency, downgraded the ratings of three major banks in Thailand, Ayutthaya, Kyoto, and Thai Army, from A3 to B1, and from A2 to A3 two weeks ago, and the credibility of Thai banks has dropped sharply. Now the Thai government is once again preparing to further raise the margin for bad debts in banks, which is a joke invited by your fucking monkey.

Hearing this, Gao Shengming was even more firm in his previous decision not to help the Thai government. The banking problems are serious, and the credibility of the Bank of Thailand has plummeted, making it difficult to raise funds in the international capital markets; In addition, the credibility of the banking system has plummeted, leading to a frenzied flight of funds. When the two are combined, it is not difficult to conclude that the Thai baht is really finished.

"Can you tell us about the position of the Bank of Thailand in forward foreign exchange contracts?" The questioner was asked by Shen Liantao, Deputy Chief Executive of the Hong Kong Monetary Authority, who represented the Hong Kong Monetary Authority in the conference call.

"Ahem...... a few days ago, the central bank just threw out a $15 billion Thai baht forward contract, and when asked about this question, Malaka was still embarrassed, knowing that short selling investors can have enough positions, and the Bank of Thailand is the first to take the lead. Fortunately, no one at the meeting could see his expression, and after pretending to prepare, he said: "The most important thing at the moment is to closely monitor the movement of the market." Especially in the forward foreign exchange market, once there is a huge sell-off, we must pay attention to the spot market at the first time, and I hope you can help at that time. ”

Malajia whispered and begged his colleagues to support the Bank of Thailand, and the phone receiver was silent for a while, and then Gao Shengming was the first to speak: "Don't worry, Singapore will definitely support the Thai baht in this regard." We've got $1 billion ready to get in at any time. ”

Singapore and all the bigwigs here don't want to support Thailand at all, including Ko Katsumei. Historically, until the Thai government abandoned the fixed exchange rate in July, the Thai government received a total of more than 14 billion US dollars from the rest of the Asian countries, of which Japan alone contributed 10 billion US dollars, which shows the attitude of the other Asian tigers and tigers.

The reason why Singapore has allocated US$1 billion to support Thailand is that most of the short selling of Thai baht contracts is carried out in the Singapore futures market, and Singapore is also more active in terms of morality; Second, Singapore also has its own considerations, although Thailand has been actively building a regional financial center in recent years, but it still cannot be compared with Singapore, Hong Kong and other financial centers that have been around for some years. Through this active intervention in the market, Singapore wants to let the world know that Singapore is not just a small place, and it will not be manipulated by others.

"We also have to pay attention to the dynamics of the forward market, I'm afraid we can't give you too much support, and it is estimated that there is only $100 million." With the first statement, others also took a stand, this time by the governor of the Bangko Sentral ng Pilipinas (BSP) Gabi Hinsson. Like Thailand, the Philippines has also suffered a fierce attack on international travel funds in the forward market, although the situation is not as serious as Thailand, but it has also reached the point of urgency. Historically, the Philippines has only been able to resist until July 11, when it announced that the Philippine peso would abandon the fixed exchange rate system.

"I'll need to discuss it with Mr. President, but we'll buy it when we need it." After the Philippines, Malaysia and other regions successively expressed their positions, Shen Liantao said.

The Philippines has only a few billion dollars in foreign exchange reserves, and it has said that it will support $100 million, but Hong Kong's foreign exchange reserves of more than 120 billion US dollars have not been given to a single fart. Malajia is very dissatisfied with this, but he also knows that Hong Kong is at a juncture of historical changes, and it is not easy to offend, after all, there is still hope for Hong Kong!

"On behalf of the Thai government and the Thai people, I would like to thank you all for your support." Although Malajia did not receive much response, as a senior leader of the national government, his words and deeds should not be too petty.

"Where, Where, ......"

"...... as it should be"

"You're welcome ......"

……

"In addition to our support in this regard, the Thai government should also do something to limit the liquidity of investment funds so that they cannot succeed." At the end of the call, Gao Shengming suggested.

"Yes! We will soon introduce regulations that will restrict local banks from lending money to foreign investors, and at the same time significantly increase the level of offshore lending rates, making it much more expensive for them to borrow. "Although we have not received any commitment from Hong Kong, Malajia knows that it is now the best possible outcome. After all, he attracted nearly $3 billion in foreign aid, and he was in a good mood and didn't care about the secrecy regulations, and revealed all their internal conspiracy plans in one go.

Seeing that the Thai side has also made full preparations, several figures who are prominent in the financial circles of Southeast Asia are relieved, and they believe that with their national strength, they will definitely be able to cope with this currency crisis.