Thai Baht will be switching to Floating rates!
Feng Yu and Soros burst out in laughter when they heard about this.
That’s right. Although this measure can hold off Feng Yu and Soros for the time being. But Basong had not considered that even if Feng Yu and Soros stop dumping Baht, not a lot of people will buy Baht. How can the Baht’s rates rise when no one is buying them?
This method can only slow down the collapse of Thailand’s economy. At least, Thailand’s property prices will be stabilized.
These two months, Thailand’s property prices had been fluctuating. The fluctuation is not as bad as the stock market and Baht, but it had an impact on Thailand’s economy.
Once Thailand’s property market collapse, Thailand will follow Japan’s footsteps. All the wealth accumulated over the years will vanish before their eyes.
“Boss, Thai Baht is starting to fall. There are no large quantity orders, but multiple orders are dumping Baht. It should be those foreign banks in Thailand.” He Zhaoji reported.
“Guess how much will Baht fall today.” Feng Yu smiled while asking.
Yesterday, Thai Baht was pulled up for the last time to 26.4:1. But today, the Thai Government announced they would be switching to Floating rates as they do not have any money to prevent Baht from depreciating. They will let the market determine the rates of Baht.
“It should be around 10%.” He Zhaoji gave a conservative answer.
“You don’t need to be so conservative. How much do you think it will plunge?” Feng Yu was in a good mood and wanted to share his happiness with someone.”
“I think it will be over 15%!” He Zhaoji replied.
15% plunge, and the rates will be nearing 30:1!
“I think it might be around 30% or even more.” Feng Yu replied confidently.
In Feng Yu’s previous life, it was a single drop of 17% in a single day. This time, with his participation and Soros, had prepared more money, Thai Baht will plummet even more!
He Zhaoji was shocked. Does Boss think that it will be over 30:1?! If the rates reach 30:1, they will recover their capital if they cancel all their futures contracts. If Baht falls lower than this, their profits will be higher.
In the future, they will be looking at profits every day, and it’s up to them when they cancel their contracts.
“You don’t believe me? It’s fine. Just continue to dump stocks today and ignore Baht. You will know if I am right at night!”
Boss’s confidence had convinced everyone. He Zhaoji had seen this confident look on his Boss’s face several times. Every time Feng Yu shows this expression, his prediction will come true in the end.
He Zhaoji had joined Wind and Rain Consulting firm because the salary package is much better than what he was getting when he was a broker. Also, he wanted to learn from Feng Yu. At first, he was not convinced that Feng Yu was better than him, as Feng Yu was very young. But after several times, he was convinced Feng Yu is a genius in financial trading!
He Zhaoji had still wanted to say something, Fu Guangzheng knocked on the door and ran in.
Feng Yu stood up immediately. Fu Guangzheng was supposed to be bringing his parents around Hong Kong. Why did he return?
“Brother Feng, Thai Baht is now Floating rates?” Fu Guangzheng panted and asked.
“Did something happen to my parents?” Feng Yu asked at the same time.
“Your parents are fine. They had returned for a nap. I heard about the changes to Thai Baht and rushed here to ask you.” Fu Guangzheng knew the reason why Feng Yu stood up suddenly. He had thought Feng Yu stood up to share the good news with him.
Feng Yu sat down again.
“That’s right. Thai Baht is now on the Floating rates system. This change will bring along significant side effects. If Thailand’s economy is in good condition, it will not be a problem. But now, Thailand’s economy is under attack, and changing this policy will not be effective. You don’t need to worry as Thai Baht will plunge to more than 40:1 next month!” Feng Yu leaned back on his chair and said.
“How much? 40:1? Will it depreciate that low? How much will we make?” Fu Guangzheng was overjoyed. It was better than he imagined.
“We bought those future contracts when Baht is at 25:1. After that, we continue to buy in more future contracts, and the average is around 27:1. The leverage is at 12 times. How much do you think we will make?” Feng Yu asked Fu Guangzheng back.
Feng Yu did not say how much they had spent and only wanted to tease Fu Guangzheng.
Fu Guangzheng’s math is good. “That means we can earn more than 150 Baht for every USD? This is around 34 USD! Our profits are so high?!”
Feng Yu knew Fu Guangzheng would only look at the profits without considering their capital. He wonders why Fu Guangzheng is still so ignorant even when he has an uncle named Fu Rongqi. He is also sticking by Professor Liang’s side every day now and should be better.
“You did not consider how much we had put in. The money we had used to create this, are all from loans, and have you thought about our daily interest? Have you taken the losses from dumping stocks into consideration?” Feng Yu smiled.
Fu Guangzheng was stunned and asked weakly. “We had spent so much? Then do we still have profits?”
“If Thai Baht plunged to 40:1, our profits will be more than 100%. It might even reach 120%. But our profits will mainly depend on our stock index futures. After all, we had been focusing on the stock market.
100%? Will we double our money? After deducting the 30% commission to Feng Yu, Fu Guangzheng’s returns will still be a lot.
Fu Guangzheng had told his eldest uncle to join the war, but his uncle refused. He wonders if his uncle will regret his decision.
“What is Thai Baht’s rate now?” Fu Guangzheng asked.
Feng Yu looked at his monitor. “It’s 27.4:1, and it is still falling.”
“Does that mean we will be making money every day from now onwards?” Fu Guangzheng asked excitedly.
“How long will it take for Thai Baht to fall to 40:1? It should drop to 30:1 today or tomorrow, but I am sure there will be a rebound. After that, we don’t need to do anything as Soros will settle it for us. But we must still work on the stock market, and within this week, we will focus on the Singapore market.”
“Ah? We are still not done with Thailand, and we are going to attack Singapore?”
“These countries are interrelated, and you can see it from Singapore’s currency fluctuations. When we suppress Singapore currency, it will also set off a chain reaction. At that time, we can profit from both markets.”
“We will be fighting both sides at the same time. Do we have enough funds?”
“Hahaha… Don’t worry about this. Do you know what large-scale panic? Have you heard of the bandwagon effect? We don’t need to invest a lot when we try to pull down SGD, and we can settle some of our future contracts earlier to raise funds.”
That night, Thai Baht plunged to 31.6:1, and then rebound slightly. No one thinks that Baht can recover from this, and it will plummet!
