Chapter 1255 Lost more than three to four billion pounds

Author: Jie Zuo

Chapter 1255 Lost more than three to four billion pounds

History is the best teacher.

It is actually understandable that Germany did not act as a European leader to save Britain's pound exchange rate.

Why are Germans so afraid that their inflation will be out of control? Think about the astronomical figure in which the exchange rate of the German paper mark against the U.S. dollar dropped after World War I, and you will be able to relate to that fear.

There is a joke about this incredible situation. A worker was pushing a trolley to collect his wages. On the way, he encountered two robbers. They took the trolley away without taking the money.

After the end of World War II, Germany was divided into West Germany and East Germany. West Germany, the de facto orthodox Germany today, also suffered from hyperinflation.

Nowadays, Germany cannot take care of Britain, which has something to do with this historical origin.

Of course, don't think that Gui Lao really doesn't know how to speak tactfully.

When Helmut Schlesinger, the president of the German Central Bank, publicly stated his position to financial reporters, he did not directly say that he did not care about the pound. Instead, he took a detour and said that the Italian lira, which is in a similar bad situation to the pound, has suffered recently.

After a devaluation, the currency needs to undergo a "more comprehensive adjustment."

This meaning is translated. According to other people's cultural context, currencies need to be "more comprehensively adjusted", which is basically the subtext, so what, you wish for your own blessings.

The international hot money making waves in the European foreign exchange market, especially the financial elites who took the lead, have such a keen sense of smell that they immediately captured the key information inside. The decisive moment for the success of the sniper attack on the pound has arrived!

It can be said that the main players in international hot money have almost reached a tacit understanding.

On September 16, as soon as the British foreign exchange market started trading, the Bank of England had to accept a sell order of about 300 million pounds, which was equivalent to 500 to 600 million U.S. dollars. The so-called short pressure in the market was overwhelming.

At this time, Gao Xian had arrived in London, which was on the front line of the war, as the president of the Xiangjiang Monetary Authority and the chairman of the Xiangjiang Development Investment Fund.

The reason given by Gao Xian, the president of the Hong Kong Monetary Authority, is that as a counterpart of the central bank, Gao Xian is close to observe how the Bank of England responds to the pound crisis, and appropriately expresses his thoughts if the Hong Kong dollar linked exchange rate also encounters this situation.

.

The reason given by the chairman of the Heung Kong Development Investment Fund is that the public-owned Heung Kong Development Investment Fund has not taken advantage of the recent trends in the international market to rob the precarious British pound. Instead, it has entered the British stock market to buy at the bottom, ah...

No, it’s about confidence in the UK’s future economy.

In fact, the logic of Heung Kong Development Investment Fund, which to a certain extent provides smoke bombs and hedges risks for Heung Kong Capital, to enter the British stock market is based on a linkage between the securities market and the foreign exchange market. For example, the pound exchange rate will eventually be unable to hold.

Looking at the lower limit of fluctuations allowed by the European exchange rate mechanism from another perspective, the UK, which is trying its best to climb out of the capitalist world economic crisis in the early 1990s, needs a loose monetary environment to stimulate the economy, which means that the British stock market will next

Big rise.

However, not all investors can understand and use this logic and linkage in the current era.

Behind the Xiangjiang Development Investment Fund is the Xiangjiang Exchange Fund, which ranks among the top five in the world's foreign exchange reserves. Although Xiangjiang's economic size is not good, for example, it cannot be compared with the oil-producing tycoons in the Middle East, but the Xiangjiang Development Investment Fund is like a fist.

The strength shown is concentrated enough to have the capital to be respected.

Just like at present, Gao Xian doesn't mind the outside world knowing that Xiangjiang Development Investment Fund has entered the British stock market. Although it does not help alleviate the current situation where the pound exchange rate is being suppressed step by step by the short forces, it is still under the British official, media and private sector.

There, you can gain goodwill and reputation.

With this good foundation, President Gao Xiangao's exchanges aimed at close observation and learning have become more comfortable. One manifestation is that he has either slightly improved or more realistically grasped the real reactions of British elites.

After all, he is a veteran who has been involved in finance for hundreds of years. After seeing 300 million pounds thrown out without even seeing a wave, the Bank of England felt that something was wrong and quickly used the power of the Bank of England to lower the benchmark interest rate from the original very low level.

A high of 10 percent, raised to 12 percent; then a few hours later on the same day, raised again to 15 percent.

This move gave the outside world the impression that Britain was still trying to fight to the death, but Gao Xian heard a sense of relief from the tone of British Finance Minister Norman Lamont, and even a kind of joy of dying early and resurrecting early.

His words are even more intriguing, as he has already done what is needed for governance.

This actually reflects, to a certain extent, the prevailing mentality in British politics when the pound joined the European Exchange Rate Mechanism in 1990, before Mrs. Thatcher stepped down. It envied the European leader Germany for many years.

With its outstanding performance in controlling inflation, it defied internal opposition and embraced the European Exchange Rate Mechanism.

When this commitment to governance could no longer be sustained, British politicians "pragmatically" gave up, even if it caused serious damage to Britain's reputation.

What Robin Pemberton, the governor of the Bank of England, revealed was more professional. The British benchmark interest rate was raised to 15% not to endure it to the end, but to prevent the pound from suddenly collapsing. During this gap,

Here, the British government held an emergency cabinet meeting to discuss the specific matters of the pound's withdrawal from the European Exchange Rate Mechanism.

Under the overwhelming attention of the media, at seven o'clock that evening, the cabinet meeting came to an official conclusion. British Finance Minister Norman Lamont announced to reporters that the pound would withdraw from the European Exchange Rate Mechanism and the benchmark exchange rate would drop from 10 percent tomorrow.

Five, pull back to 10 percent.

This also means that Britain, which finally gave in, was busy in vain.

Some details are under confidentiality, but there is an approximate figure of how much reserves the Bank of England has lost: three to four billion pounds, all in vain!

In response, the British media ridiculed you with all their strength, Norman Lamont, the British Chancellor of the Exchequer, why are you still smiling?

British Prime Minister John Markey did not run away from the media. He was accused of being hesitant and indecisive. What is slightly worse is that the Prime Minister has a sense of shame. It is said that he hid in the closet several times and cried secretly.

Gao Xian, who has watched and learned, will definitely not be able to care about admiring these things. He should quickly divide the money and retreat to avoid being exposed.
Chapter completed!