Chapter 158: Foreign Exchange Opens the Way
"Okay, then this matter must be coordinated well, and nothing can go wrong," County Magistrate Zhang smiled. After thinking about it for a while, I asked the secretary Xiaolu to notify the leaders of several relevant departments to come over, and some things should be ventilated in advance.
County Magistrate Zhang sat in his office, groaning. Recalling the situation of seeing the merchants, when several people in suits and leather shoes walked in, County Magistrate Zhang's eyes ignored the one who walked in front of the middle, because this one was too young, or should I say too young. It is absolutely impossible to infer from common sense, so County Magistrate Zhang's gaze fell on both sides. Subsequently, the introduction of Xiao Tian of the supply and marketing cooperatives surprised County Mayor Zhang, but fortunately, it was County Mayor Zhang's decades of life experience, and the city government was deep enough to show no abnormality. If it weren't for Xiao Tian's timely introduction, he would probably have mistaken people, and it turned out that the other two young people were the boy's subordinates. When County Magistrate Zhang and the boy were talking, the two of them stood on one side.
However, the young man's standard and fluent Mandarin made County Magistrate Zhang a little suspicious, and the young man probably noticed it and explained it a little. He said that he was a mainlander and had relatives in the port area, and he was studying there and took the time to help. Only then did the teenager take the initiative to take out some documents and prove them, and asked the staff to check them. Only then did County Magistrate Zhang relieve his doubts slightly, which was similar to the fact that some people on the border of Yun Province ran outside.
However, of course, County Magistrate Zhang will not believe all of the young man's words, but just listen to them, County Magistrate Zhang is still quite skeptical. Looking at the young man's generous and full of aura in his speech and demeanor, this is the most puzzling thing for County Magistrate Zhang! People are old and fine, no matter how big the young man's background is, County Magistrate Zhang chose to pretend to be confused. As far as things are concerned, others are here to do business, why do they hold on to other people's identities? The most feared thing is that if it is the same as the guess in the heart of County Magistrate Zhang, it will be even more difficult to end! There is no benefit and significance to the county magistrate Zhang. Let a sleeping dog lie. As long as foreign exchange can be obtained, as long as it is in line with national policies, as long as the procedures are legal, County Magistrate Zhang does not care who the other party is. Besides, taking 10,000 steps back, the other party's teenager can make these things reasonable and legal, is this kind of person that County Magistrate Zhang can manage?
Since last year, provinces, cities, and localities have repeatedly issued documents requiring all localities to actively export and earn foreign exchange. The embarrassment for County Magistrate Zhang is that he is a remote county. It has always been an agricultural county, what can this county trade with? In the past, it was the state's unified purchase and sales, and the local government did not need to consider these at all.
For a long time, China's balance of payments has been mainly foreign trade and remittance income, and. The volume of foreign trade is not large. After the Third Plenary Session of the 11 th CPC Central Committee, the focus of the country's work shifted to modernization. Internally invigorate and open up. Open to the outside world. In 1980, the International Monetary Fund and the World Bank restored China's legitimate seat in these two organizations. Beginning in 1981, China began to compile a balance of payments statement to submit to the above-mentioned organizations.
From the special period to the reform and opening up, the country has realized the important role of foreign exchange reserves. Because the U.S. dollar is the world's main currency, this foreign exchange reserve is based on the U.S. dollar.
Since the beginning of '79, China's foreign trade management system has undergone changes. The foreign trade department is responsible for export operations from one to a number of export operations. The number of units that have obtained export business rights has increased considerably.
Since the prices of goods in China have always been set by the state and have not changed for a long time, the price comparison of many commodities is out of balance, resulting in a situation of huge disparity between prices in domestic and foreign markets and export losses. Since 1981, two exchange rate systems have been implemented. This is the two-track exchange rate system. One of them is that the official rate is used as the 'non-trade foreign exchange settlement price', and the official rate from '81 to '84 is 1 US dollar to 1.5 Chinese dollars. The other is the internal settlement price of foreign exchange for trade, which is calculated on a 1 to 2.8 basis. The shortage of domestic funds and foreign exchange, and the urgent demand for foreign exchange have made the country's export policy adopt a certain tilt, and the country has to take various measures to encourage exports in exchange for foreign exchange.
In 1979, China's foreign exchange reserves were $2.154 billion, $2.262 billion in '80, $4.743 billion in '81, and rose sharply to $11.125 billion in '82, exceeding $10 billion for the first time.
Since it has been determined that the qualifications of the merchants in this area are fine, and the foreign exchange funds have been certified by Huaguo Bank, the remaining problem should be how to cooperate with the young merchants in this regard, so that the young merchants can return satisfied. The county can even make certain concessions if necessary.
Under the dual-track exchange rate, the state uses a retention system for foreign exchange management. After the export of foreign exchange is recovered, a part of the foreign exchange (a certain percentage) must be handed over to the state at a lower official exchange rate, and the remaining part can be sold to Huaguo Bank at the market exchange rate, or you can import goods according to market information, that is to say, this part is the most important. Which provinces and cities do not need foreign exchange for construction? In particular, after the establishment of diplomatic relations between China and the United States, because of the changes in the world political situation, the Western countries led by the United States have canceled certain restrictions on trade with China. The state and local governments are very urgently needed for these advanced technologies and products, and only foreign exchange can obtain them.
Maybe you can pave the way first, and doing business is all about being born and cooked twice! County Magistrate Zhang pondered.
This is also Li Zhendong's courage to go deep into the inland provinces to do business and open the way with foreign exchange. In the 80s and 90s, China's demand for foreign exchange was beyond imagination. While acquiring foreign exchange, it also imported a large amount of technology and materials from abroad to build the country's key projects, and it was not until 90 years that China's foreign exchange reserves exceeded $20 billion for the first time.
For a long period of time, the Chinese government was a little chaotic in financial management, and there were Chinese currency and foreign exchange bills used in China, and foreign currencies were often settled in US dollars and Hong Kong dollars. In Hong Kong, Li Zhendong holds a lot of Hong Kong dollars, and if he accepts Hong Kong dollars, Li Zhendong can directly remit to Huaguo Bank. If he needed US dollars, Li Zhendong had already purchased hundreds of thousands of US dollars from HSBC, that is, he had spent more on the handling fee of buying US dollars. The US dollar and the Hong Kong dollar Li Zhendong has been prepared, not only these two, Li Zhendong has even prepared a lot of foreign exchange coupons. Foreign exchange vouchers are not used for business, but may be needed for some special occasions.
The vast majority of people can't go abroad, so if you want to buy something better, you can only take foreign exchange coupons to friendship shops and duty-free shops. In the 80s, China was not rich, but there were always a small number of people who had more money. Foreign exchange coupons represent a certain higher status, and there is no shortage of people with high status in China. (To be continued......)