"25.904, no problem, five billion baht."

“25.925？ Three billion baht? No problem. ”

……

One by one, the phone calls were made from within the Tianyu Fund, and the amount and price of the sale were immediately quoted, and almost all the calls were not bargaining, and now all the traders had only one thought, that is, to clear the Thai baht in their hands as soon as possible.

It's late at night, and it's been a while since the Thai finance minister announced his resignation, but the lights are still bright inside the Tianyu Fund, Zhong Shi is in charge, and everyone has given up their rest and is looking for all possible counterparties in the market.

The foreign exchange market is a non-stop trading market, and currencies move frequently around the globe 24 hours a day. Although the Thai baht is not a major currency, benefiting from the vigorous opening of the financial industry in Thailand in recent years, coupled with the vigorous economic development in previous years, the Thai baht trading business has also expanded to a global scale.

An important profit point for multinational commercial banks comes from currency transactions. This kind of trading relying on exchange rate differentials is usually relatively large and frequent, and the foreign exchange transactions between commercial banks and the foreign exchange forward market together constitute the entire foreign exchange market.

Now the employees of X-Spatial Fund are looking for counterparties who are willing to buy Thai baht in the entire foreign exchange market, because the largest market is in Thailand, but the Thai side has passed the trading time, so they can only look for those large commercial banks that have business in Thailand.

Zhong Shi sat on the milky white sofa chair, his face cloudy. Andrew saw it. I didn't dare to bother, so I ran out and went on the phone with the traders.

I have clearly changed the course of the financial market, and it is difficult to grasp the future process. One thing is for sure, though, that while the baht depreciated earlier than in previous history, other currencies such as the ringgit, won, and Singapore dollar will inevitably take a hit.

"Zhong Sheng, it's almost!" While Zhongshi was thinking, Andrew knocked on the outside door, then walked in and reminded him softly.

Zhong Shi was stunned, and immediately raised his head. He looked at Andrew with a puzzled expression.

"Currently in the spot market. We have been suppressed to the level of 26 baht to 1 dollar, and there is no counterparty. I'm afraid I'll have to wait until tomorrow to continue selling. Andrew frowned, his expression a little confused.

As a general logic, even if the Thai Baht is not the main foreign currency. However, the volume of transactions between commercial banks is not so small. By the time the baht slipped to 26 baht to $1. He and other traders only sold 35.7 billion baht. Less than a fraction of the entire position.

What he didn't know was that the sudden announcement of the resignation of Thailand's finance minister had put the entire market in a state of turmoil. After the initial purchase, when the spot market reached the minimum limit of the baht, the trading departments of the commercial banks began to be cautious. If the baht bought at the current price cannot be sold at a slightly higher price tomorrow, then it will have to be sold to the Bank of Thailand BOT. In this way, they have no exchange rate difference to make.

Another reason for this is that when Tianyu Fund began to sell Thai baht on a large scale, HSBC and Standard Chartered immediately noticed the market trend, because they also have branches in Thailand and have related Thai baht exchange business. When there is unusual movement in the market, they immediately let traders find out who is selling and inform their own forex trading department to get ready.

After several attempts, they found that the Tianyu Fund simply sold at any cost, as long as it was above 26 baht, it would not bargain at all, and even the price of one basis point was not discussed, and the deal was directly reached. They quickly understood that this was Tianyu Fund's rapid shipment.

Time passed little by little, and the selling of the Tianyu Fund showed no signs of stopping, which had pulled down the price of the baht by more than a dozen basis points, but they still did not stop.

Originally, banks such as HSBC and Standard Chartered could buy at a lower price and sell at a higher price. But when they bought some of the baht, they went to other markets to inquire and found that Tianyu Fund also made trading calls to these commercial banks, and the other party also ate a lot of baht, and the price was almost the same as theirs, so there was no room for trading.

Soon, the price of the baht sold in the spot market fell rapidly, but there was still a steady stream of baht selling, as if the money on the short side was endless. By the time the Thai baht fell to 26 baht to 1 US dollar, the liquidity of the entire Thai baht foreign exchange market disappeared. Yes, it's disappearance, not lack!

At this time, within the various commercial banks, the Thai baht has become a respectful attitude. Originally, they could have sold the baht they had bought at the original price at an affordable price, but there was a lower price in the market, and they could only wait for the baht price to rise if they wanted to reduce this part of their position.

For example, the original 25.904 baht for 1 US dollar to buy Thai baht, if you want to make a profit, you can only make a profit above this price, but the market is full of 26.2 baht for 1 US dollar to sell, which makes it impossible to trade the high-priced Thai baht. The steady stream of selling further lowered the value of the baht, eventually reducing it to 25.995 baht to 1 US dollar.

At this price, except for the exchange fee, there is no room for profit, and naturally, there is no possibility of trading. As a result, the liquidity of the entire market is gone.

This is not the fault of the X-Spatial fund alone, but the pessimism of the entire market about the situation in Thailand. In fact, in markets such as Europe and the United States, related selling is also taking place simultaneously. Soon, the commercial banks, which were the main traders, found that cheap baht was everywhere in the market, which made them quickly abandon the idea of buying and wait for the Thai bank to intervene the next day.

Because of all this, the ultimate buyer will be the central bank, because they are the bank of the bank, the ultimate lender.

As the price of the spot exchange market falls, the price of the futures market also begins to approach the minimum limit set by the Bank of Thailand, which is a chain reaction, if the value of the two currencies is not on the same level, arbitrageurs will enter the arbitrage, pulling the difference between the two back to the same level.

It's time for the baht to defend again!

"Lost liquidity so quickly?" Zhong Shi frowned and said very dissatisfied. However, he also knows that this is not a problem, because the main trading market Thailand is in a state of rest, and the trading volume of the baht in other markets is not too large, who makes the baht not the main currency?

"Yes!" Andrew nodded, and then said, "We still have less than 80 billion baht in our position, and at the current rate, I'm afraid it will take several days to get out!" ”

"Annoying!" Zhong Shi pinched his eyebrows and said insincerely. Now he has gone from worrying about the non-depreciation of the baht to not being able to clear his current position, although this part of the position is not clear, and it is only a part of the fixed interest.

Andrew naturally couldn't speak, so he could only stand aside with a somewhat embarrassed expression.

"Let the traders rest for now, and then sell at full strength tomorrow." Zhong Shi thought about it, but in the end, there was no way to do it too much, so he could only let the tired traders go to rest first.

……

"The attack is coming again!" This was the first reaction of BOT traders when they saw the price of the baht against the US dollar fall back to the critical point. In one night, it fell from 25.899 the previous day to the level of 25.998, which can be regarded as a big fall.

All this, of course, is due to the sudden resignation of the Thai finance minister, although it has only been two weeks since the Thai side announced that it has successfully defended the baht, but the pessimism in the market has not dissipated, and now, there is even a trend of intensification.

"Here's yesterday's data, take a look!" Last night, BOT traders also intervened in the financial markets, but they intervened in the futures market. It's just that they used millions of dollars to raise the price of the baht by only a dozen basis points, but this increase quickly fell back, because there was a large number of sell-offs in the foreign exchange market, which directly affected the price of the foreign exchange market.

Traders in the daytime market turned on the phone, looked at a string of data, and found that there were not many opponents, but in the middle of the night, the Thai baht contract, which had just improved somewhat, suddenly fell sharply, and there was no sign to follow.

The only major event that happened yesterday was the resignation of the Minister of Finance of Thailand, but this impact should be manifested after the opening of the European and American markets, and the adjustment of the value of the Thai baht should be in place in one step, and there is no reason to wait until midnight to see a sharp fall.

"What about the spot market?" While many traders were still looking for the reason, a trading executive interrupted their thinking and made them suddenly realize.

"Boys, it is estimated that there will be a large-scale sale today, and you need to work hard." Although the traders are well aware of what will happen today, the person in charge still has to warn him.

The traders nodded their heads, having experienced the fierce battle in May, and naturally did not take the upcoming situation into account, and in their opinion, the baht was probably already resting on its laurels.

And the local banks in Thailand, when the business hours of the foreign exchange market arrived, there were countless calls to sell Thai baht, naturally the buyers in the illiquid market yesterday, they bought the baht at the lowest price, and naturally hoped to sell the baht in their hands at the first time. This is not because of the fear of the depreciation of the baht, but because of the desire to be able to sell at a higher price to earn the difference.

Originally, the exchange rate price of the two sides should be the same, but everyone knows that BOT will definitely enter the market to intervene, so the local Thai bank will give a higher price on the basis of its own estimate, and then wait for BOT to enter the market and intervene before selling, so that it will naturally earn an exchange rate difference.

Liquidity, that's it. (To be continued......)

PS: Thank you very much for the monthly ticket from the Zebra Center!