Hong Kong's currency is about to depreciate!

A few years ago, there was a massive depreciation of the Hong Kong dollar, when the Hong Kong dollar adopted a floating exchange rate, and as a result, when Hong Kong's future was in crisis and Hong Kong people began to worry about the future of Hong Kong, a lot of money withdrew from Hong Kong, which led to the depreciation of the Hong Kong dollar. In '81, HK$5.13 was worth US$1, but in September 1983, it fell to a low of HK$9.60 per US$1.

At that time, people were panicked and everyone was worried about Hong Kong's future, and it was not until the government adopted a fixed exchange rate brake, which has been 7.8 Hong Kong dollars to 1 US dollar, that the Hong Kong dollar was considered to be re-stabilized.

The issuance of any kind of currency requires a deposit, for example, the earliest paper money used in the world, I am afraid that it is the paper money of the Genghis Khan period, the mighty Mongolian army, the east and the west, paper money also began to spread widely, to Europe, Europeans are surprised to find that a small paper money, can replace the role of gold and silver.

At that time, this kind of paper money was directly exchanged with gold and silver, and the huge gold and silver reserves of Genghis Khan's regime could allow paper money to be exchanged with gold and silver at any time, so the paper money at that time was very stable, and all kinds of merchants also liked to carry paper money, after all, paper money was more convenient to use.

But later, after entering the Central Plains, Genghis Khan's regime began to corrupt, and when it was short of money to spend, it began to print a large amount of paper money, which led to the continuous depreciation of paper money.

Any currency, if it wants to circulate, must have reserves, and the issuance of the Hong Kong dollar. It is to use dollar cash as a reserve.

Hong Kong's foreign exchange reserves are only HK$700 billion, and Hong Kong dollars are in cash. There are more than 60 billion yuan, so if you directly exchange cash for dollars, then Hong Kong's foreign exchange reserves are completely sufficient.

However, there is more money in the broad sense than cash. For example, deposits, such as the influx of various types of capital during stock trading, have been converted into the form of Hong Kong dollars.

And these currencies are in the process of withdrawing from the stock market. It was directly converted into US dollars, which immediately left a gap in the foreign exchange reserves of major banks.

Many branches lack foreign exchange reserves. Apply for transfer from the head office. It took a process, and in the process, the citizens got the negative news that the Hong Kong dollar could not be exchanged for the US dollar! The Hong Kong dollar is about to depreciate!

Everyone knows that without the support of the US dollar, the Hong Kong dollar is a piece of waste paper, and now, it seems that this waste paper is really going to become waste paper.

Hurry up and put your own deposit. Exchange to USD! The U.S. dollar is the international currency, at least stronger than the Hong Kong dollar!

Thereupon. All the people started to go to the banks, hoping to convert their deposits and cash into dollars, which is perfectly legal in Hong Kong.

As a result, there was a rush of people in the banks, and everyone was anxiously waiting, thinking that their wealth had almost halved during the Hong Kong dollar crisis in previous years.

At this time, the Hong Kong government finally realized that greater trouble was coming!

Originally, the mysterious funds flowed into the Hong Kong dollar market and exchanged them for dollars in the Hong Kong dollar market, but they didn't pay too much attention to it, after all, although the money was huge, it was not six or seven million US dollars, and it was only 50 million Hong Kong dollars when converted into Hong Kong dollars.

However, the situation has changed a lot, and when all the unsuspecting citizens began to use the Hong Kong dollar to exchange for the dollar, the huge amount of funds began to turn around ineffectively, and the strength of the number of people was great, and all the citizens of Hong Kong had to start exchanging dollars, Hong Kong's foreign exchange reserves were simply insufficient.

As a result, in front of the major banks and television sets, Hong Kong government officials appeared and swore to reassure the public that the Hong Kong dollar is very strong and there is no problem, and everyone must believe that the Hong Kong government is fully capable of handling the currency issue.

But no one listens to them, can the government believe it? A few days ago, I believed the words of that expert and continued to invest my money in the stock market, but as a result, I lost all my money!

This Hong Kong dollar problem must have something to do with the stock market crash! The stock market crash has caused everyone's wealth to shrink, and the Hong Kong dollar will have problems!

Hong Kong citizens will no longer be fooled by the government's rhetoric, they are very determined to wait in line in the bank, which must be exchanged for dollars!

Now, the biggest headache is the British directors of the Finance Department and the Finance Department.

"Someone is maliciously manipulating our Hong Kong dollar, which has caused us a crisis of confidence." The director of the financial department said with an ugly face: "At present, the major banks are taking out their foreign exchange reserves and exchanging them with the Hong Kong dollar to calm the hearts of the citizens, but there are still more citizens who ask for exchange, so that our foreign exchange reserves will always be exhausted, and when the time comes, our trouble will be even greater." ”

"I'm curious, what is this force trying to do?" The Financial Secretary said: "They maliciously manipulate the stock market, and they can cash out and make a profit, but they will not get any benefit from operating our Hong Kong dollar and directly depreciating it." ”

In the previous Hong Kong dollar crisis, that was because the exchange rate of the Hong Kong dollar was floating, first when 10 Hong Kong dollars were exchanged for one dollar, the dollar was exchanged for Hong Kong dollars, and when the Hong Kong dollar stabilized to 7.8 Hong Kong dollars for one dollar, it was exchanged and profited.

And now, the Hong Kong dollar has been determined to be the exchange rate unchanged, and they have used the Hong Kong dollar to run on the dollar, thinking that the Hong Kong dollar will depreciate and then exchange it back? Tossing like this doesn't seem to work.

The methods used by Soros and his ilk in later generations are not to make money in the Hong Kong dollar market, their methods are mainly three steps: first, speculators borrow Hong Kong dollars at low interest rates as ammunition, and throw Hong Kong dollars in the futures market, and at the same time short sell futures indexes; Then, there were opportunities in the external market that were favorable to speculators, who spread rumors and frantically sold the Hong Kong dollar, forcing the Hong Kong government to 'hold interest on it', causing the Hang Seng Index to plummet, and even borrowing stocks to sell short. Finally, there is the harvest period, when the Hang Seng Index plummets, short contracts are closed and speculators leave with money.

They make profits, mainly from the stock market and the futures market, and the attack on the Hong Kong dollar is just a means, and the use of the Hong Kong dollar to cause turmoil in the stock market. And now, the stock market has plummeted, and the other party has made money, so it is time to leave, but they have not left, but have come to disrupt the Hong Kong dollar market, which is simply nothing to eat.

"That's why their intentions are even more sinister, they want to hit our Hong Kong economy! This is a challenge to our British government! The Governor of Hong Kong, Sir Wilson William, had an angry expression on his face, and he didn't know how many times he cursed in his heart, he was the new Governor of Hong Kong who only took office this year, and he had only been in office for a few months.

There is a general run on Hong Kong citizens, which is very unfavorable to Hong Kong's economy.

"We need to raise interest rates by rolling them out." "Use interest rate hikes to entice savers to re-deposit their currencies in banks, whether in Hong Kong dollars or US dollars," the secretary for finance said. ”

The main reason is the shortage of cash, as long as it enters the bank, then these dollar bills can be exchanged again.

"Now that the confidence of citizens is low, I am afraid that raising interest rates will not be able to stop citizens from exchanging US dollars." The Financial Secretary said: "Our foreign exchange deposits will soon be redeemed by the citizens, and if we want to survive this crisis, we must bring in a batch of foreign exchange reserves from China, so as to calm this storm, otherwise the prestige of our government will be lost." ”

Now, the public has lost trust in the Hong Kong dollar and began to run on the dollar, which is not the same as stock speculation, after all, stock speculation is only the business of stockholders, and the run on the dollar is the behavior of all Hong Kong people who hold the Hong Kong dollar in their hands.

Now, even Macau, a region that can directly use the Hong Kong dollar as gambling money, is now rejecting the Hong Kong dollar, which is a very bad sign.

Only when new foreign exchange reserves are brought in so that Hong Kong people can continue to convert, and when they find that they can freely convert the Hong Kong dollar into US dollar bills, will they rebuild their confidence in the Hong Kong dollar.

Otherwise, the consequences can be severe.

"Shipped from London? That might be a danger to our economy in Great Britain. The Governor said.

Last time, when there was a Hong Kong dollar crisis, the British Empire used a lot of money to save it, and as a result, although the Hong Kong dollar crisis was over, the British Empire also lost a lot.

This time, it also asked Great Britain to use funds to save it, and if there is more conspiracy behind it, it may also damage the British economy.

But watching Hong Kong's Hong Kong dollar collapse, and the country has no response, would also show the incompetence of the UK.

So, this result is almost a must.

"Report our problems to London." The Governor said helplessly.

After receiving the report from the Governor of Hong Kong, the London government was very concerned about the Hong Kong dollar issue, but because the outbreak of the last Hong Kong dollar crisis caused great losses to the British economy, they were very cautious about the issue of bailing out the market.

This caution is a positive term, a derogatory term, and that is, a slow response.

All of Hong Kong's Exchange Funds have been liberalized, and US dollars have been injected into banks so that citizens can exchange them with confidence, and in front of each bank, there are queues of people, many of whom have been queuing here even on the first night.

Seeing that the people in front of them exchanged for US dollars, the people behind were relieved, if it was really like what the government said, there was no problem with the Hong Kong dollar, it was the best, but, for the sake of insurance, it was better to exchange it first.

For some reason, the bank's work efficiency is very low, and in this day's time, only more than 20 depositors have handled business, and the rest can only continue to queue up, waiting for the bank's business the next day.

The stock market has lost a fortune, and if they lose their deposits again, then they are simply going to fall. (To be continued......)