Hong Kong's currency is probably going to depreciate!

A few years ago, the Hong Kong dollar depreciated a large scale. At that time, the Hong Kong dollar adopted a floating exchange rate. As a result, when Hong Kong people began to worry about the future of Hong Kong, many funds withdrew from Hong Kong, which led to the depreciation of the Hong Kong dollar. In 1981, Hong Kong dollars could be countered with 1 US dollar, but in September 1983, it fell to a low of 9.60 to 1 US dollar.

At that time, people were panic and everyone was worried about the future of Hong Kong. Until later, the government adopted a fixed exchange rate brake and used HK$7.8 to exchange 1 US dollar. The Hong Kong dollar was considered to have stabilized again.

The issuance of any currency requires a deposit. For example, the earliest paper money that was common in the world was probably the paper money from the Genghis Khan period. The mighty Mongolian army fought east and west, and paper money began to spread widely. When it came to Europe, Europeans were surprised to find that a small paper money could replace the role of gold and silver.

At that time, this kind of banknote was directly exchanged with gold and silver. The huge gold and silver reserves of Genghis Khan's regime could be exchanged with gold and silver at any time. Therefore, the banknotes at that time were very stable, and all kinds of merchants also liked to carry banknotes. After all, banknotes were more convenient to use.

But later, after entering the Central Plains, the Genghis Khan regime began to become corrupt. When he was short of money, he began to print a large amount of paper money, which led to the continuous depreciation of paper money.

Any currency that wants to be circulated must have reserves, and the issuance of Hong Kong dollars is to use US dollar cash as reserves.

Hong Kong's foreign exchange reserves are only 700 billion Hong Kong dollars, while Hong Kong dollar cash has more than 60 billion. Therefore, if cash is used directly to exchange US dollars, then Hong Kong's foreign exchange reserves are completely enough.

However, in addition to cash, there are more currencies in a broad sense, such as deposits, and the influx of various capitals during stock trading, which are converted into the form of Hong Kong dollars.

When these currencies were withdrawn from the stock market, they were directly converted into US dollars, which immediately gave the foreign exchange reserves of major banks.

Many branches lack foreign exchange reserves. It takes a process to apply for allocation from the head office. In this process, citizens received negative news that the Hong Kong dollar could not be exchanged with the US dollar! The Hong Kong dollar was about to depreciate!

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

Hurry up and exchange your deposit into US dollars! US dollars is an international currency. At least it is stronger than the Hong Kong dollar!

So, everyone started to go to the bank, hoping to exchange their deposits and cash into US dollars, which is completely legal in Hong Kong.

As a result, there was a surge in the bank, and everyone was waiting anxiously. Thinking that in the Hong Kong dollar crisis in the previous few years, their wealth had almost shrunk by half, they were anxious.

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

Originally, the mysterious capital flowed into the Hong Kong dollar market and exchanged it for US dollars in the Hong Kong dollar market. They haven't paid much attention yet. After all, although the capital is huge, it is not six or seven million US dollars, which is only 50 million Hong Kong dollars in Hong Kong dollars.

However, the situation has changed a lot now. When all the uninformed citizens start to run the US dollar in Hong Kong dollars, the huge amount of funds begin to fail to turn over. There are many people and strong forces. When all citizens in Hong Kong have to start exchanging the US dollar, Hong Kong's foreign exchange reserves are not enough.

Therefore, in front of major banks and in front of the TV, Hong Kong government officials appeared and swear to assure the citizens that the Hong Kong dollar is very strong and there is no problem. Please believe in the Hong Kong government and be fully capable of dealing with the currency issue.

However, no one listened to their government, can we believe it? A few days ago, I believed the expert's words and continued to invest the funds in the stock market, but in the end, I lost all my money!

The Hong Kong dollar issue this time 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 also have problems!

Hong Kong citizens will no longer be confused by the government's remarks. They are determined to wait in line in the bank and must be exchanged for US dollars!

Now, the most troublesome thing is the British directors of the Finance Division and the Finance Division.

"Someone is maliciously operating our Hong Kong dollar, which has caused us to have a crisis of trust." The director of the Finance Department said with an ugly look: "Now, major banks are taking out their foreign exchange reserves and exchanging them with the Hong Kong dollar to stabilize the hearts of citizens. However, more citizens request exchange. In this way, our foreign exchange reserves will always be exhausted, and then we will have greater trouble."

"I'm very surprised, what does this force want to do?" said the director of the Finance Department: "They maliciously operate the stock market and can cash out it, which can make profits, but if they operate our Hong Kong dollar and directly depreciate, they will not get any benefits."

The previous Hong Kong dollar crisis was because the exchange rate of the Hong Kong dollar was floating. First, when the Hong Kong dollar was exchanged for one dollar, the US dollar was exchanged for the Hong Kong dollar. When the Hong Kong dollar stabilized to 7.8 Hong Kong dollars was exchanged for one dollar, then exchange it to make a profit from it.

Now, the Hong Kong dollar has been confirmed to have an unchanged exchange rate. They used the Hong Kong dollar to run the US dollar, thinking that the Hong Kong dollar would depreciate and then exchange it back? This kind of tossing seems to be of no use.

The methods used by Soros and others in later generations were not to make money in the Hong Kong dollar market. Their methods were mainly three steps. First, speculators borrowed Hong Kong dollars at low interest rates as ammunition, and sold Hong Kong dollars in the futures market, while shorting the futures index. Then, opportunities appeared in the peripheral market that were beneficial to speculators, spreading rumors and selling Hong Kong dollars frantically, forcing the Hong Kong government to "hold interest rates", causing the Hang Seng Index to plummet, and even borrowing goods to sell short stocks; finally, the harvest period, when the Hang Seng Index plummeted, the short contracts closed, and the speculators took the money away.

Their profits are mainly from the stock market and futures markets. Striking the Hong Kong dollar is just a means to use the Hong Kong dollar to make the stock market turmoil. Now, the stock market has fallen sharply and the other party has made money, so it is time to leave. However, they did not leave, but instead came to disrupt the Hong Kong dollar market. This is simply full and full.

"That's true, their intentions are even more sinister. They want to attack our Hong Kong economy! This is a challenge to our British government!" Hong Kong Governor Sir Wei Yixin, with an angry expression on his face, and he cursed in his heart many times. He is the new Hong Kong Governor who has just taken office this year. This situation has happened just a few months after taking office.

Hong Kong citizens generally have runs, which is very unfavorable for Hong Kong's economy.

“We need to introduce interest rate hikes,” said the Director of the Finance Division. “Use interest rate hikes to attract depositors to redeposit their currencies into the bank, whether it is Hong Kong dollars or US dollars.”

The main reason is the lack of cash. As long as you enter the bank, these US dollars can be used to exchange.

"Now the citizens are not confident enough, and interest rate hikes may not stop the citizens from exchanging US dollars." The Financial Secretary said: "Our foreign exchange deposits will be exchanged by the citizens soon. If we want to overcome this crisis, we must ship a batch of foreign exchange reserves from the country so that this storm can be calmed. Otherwise, our government's prestige will be gone."

It is not okay to raise interest rates. Now, citizens have lost their trust in the Hong Kong dollar and started to run the US dollar. This is different from stock trading. After all, stock trading is just a matter for stock investors, and running the US dollar is the behavior of all Hong Kong people holding Hong Kong dollars.

Now, even in Macau, a region that can directly use Hong Kong dollars as gambling funds, has begun to reject Hong Kong dollars, which is a very bad signal.

Only when new foreign exchange reserves are shipped so that Hong Kong people can continue to exchange, when they find that they can completely exchange freely with Hong Kong dollars and US dollars, will they rebuild their confidence in the Hong Kong dollar.

Otherwise, the consequences will be serious.

"Transported from London? That might bring some danger to our Great Britain's economy." said the Governor.

Last time, the Hong Kong dollar crisis occurred, and the British Empire used a lot of funds to save it. As a result, although the Hong Kong dollar crisis was overcome, the British Empire also lost a lot.

This time, Great Britain is also allowed to use funds to save it. If there are more conspiracies behind it, it may also damage the British economy.

However, watching the Hong Kong dollar collapse and the domestic response without any response will also show that the UK is incompetent.

So, this result is almost a must.

"Report our problems to the London side." said the Governor helplessly.

After receiving the report from the Hong Kong Governor, the London government was very concerned about the Hong Kong dollar issue. However, due to the outbreak of the last Hong Kong dollar crisis, the British economy suffered a great loss, so they were very cautious about the issue of rescuing the market.

This caution is a positive statement, and a negative statement is a slow reaction.

All foreign exchange funds in Hong Kong have been relaxed, injecting US dollars into banks so that citizens can exchange them with confidence. In front of each bank, there are a large lineup of people, many of them even lined up here on the first night.

After seeing the people in front exchanged the US dollar, the people behind were relieved. If there was no problem with the Hong Kong dollar as the government said, it would be the best. However, for the sake of insurance, I would like to exchange it first.

For some reason, the bank's work efficiency was very low. In this day, it only handled business for more than 20 depositors. What happened later could only continue to queue up and wait for the bank's business the next day.
Chapter completed!