What is a short currency? Can you talk about how Thailand was broken in the Southeast Asian crisis? In addition, why did not fall in Hong Kong?
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Buying short can actually be understood as financing, that is, you expect the stock price to rise. Now borrow money from banks or financial institutions to buy stocks, and sell stocks when the stock really rises. Earn the difference in the middle
The short selling can be understood as securities fusion, that is to say, you expect the stock price to fall, now borrowing stocks from the securities firm will sell it now, and when the stock really falls, buy the stock back and buy it back. Also give the securities firm
The financial crisis in Southeast Asia first starts with the depreciation of the Thai baht. March 3, 1997. The Central Bank of Thailand has announced that nine domestic financial companies and one housing loan company have the problem of low asset quality and insufficient mobile funds. Soros and his men believe that this is a deeper impression on the Thai financial system that may occur. At this time, the Western impact fund, which is headed by Soros, spent a large number of Southeast Asian currencies, jointly sold the Thai baht. Under the siege of many western "good men", the Thai baht was difficult to resist and continued to decline. 26.70 baht. The power of the Central Bank of Thailand began a anti -encirclement operation against Soros in mid -to -late May, intending to cross Soros's will, making it difficult to retreat, and no longer led the public to the Thai baht.
The first step in the Central Bank of Thailand formed a coalition with Singapore to use the huge sums of money to absorb the Thai baht; the second step was to follow the strategic tactics of Mahathir in 1994, and it was strictly forbidden to use administrative orders to prohibit with administrative orders. Local banks borrowed the Thai baht to the Soros army; the third step was to increase interest rates, and the interest rate was raised from about 10 % overnight to 1O00 to 1500 %. The three -pronged approach, the emerging weapon, and the strong counterattack, causing Thailand to rise to a new high at 2520 on May 20. Due to the sudden tightening of Yinen, Soros was caught off guard and lost $ 300 million.
In June 1997, Soros sent troops again and ordered the clue fund to start selling US Treasury bonds to raise funds, expand the scale of the Soros army, and launched a violent attack on the Thai baht again in the end of the end. Only the Central Bank of Thailand, which has only 30 billion US dollars of foreign exchange reserves, announced a brief battle to declare "the best of the food". Facing the overwhelming Soros army, they want to keep the fixed exchange rate in the Thai baht. The Thai people had to come up with the last trick, digging the meat and replenishing sores, and the floating exchange rate. Unexpectedly, as early as Soros's expectations, he also made various preparations for this. Various countermeasures were performed, and the fate of the Thai baht was set by Soros on the cross of shame. Thai baht continued to decline. On July 24, the Thai baht fell to 32.5: 1, setting a historical lowest point.
Is why there is no fall in Hong Kong, the biggest behind -the -scenes hero is the central government. Although the Hong Kong government intervened in the market and directly came forward to rescue the city, after all, foreign exchange reserves were limited. Although the central government also promised that they would never interfere with the Hong Kong government, at that time, the return at that time. Therefore, by adjusting China's foreign exchange reserve structure (we must know that Hong Kong dollars are from foreign currency), they use the US dollar to buy Hong Kong dollars without reducing foreign exchange reserves, and then the Hong Kong government uses these batchs to use these batchs Foreign exchange reserves have repelled internationally speculators such as Ross, and Hong Kong did not fall.
Fortunately, there is this pavement, otherwise it won't be able to look at 56