Starting from floating in Hong Kong

Chapter 120 The Crisis of the Pound Sterling

Jacob frowned, "Is this news true?"

"100% reliable." Qin Yi nodded seriously, "But these are just a cover, their real target is the pound."

"Pound pound?" Jacob sat up straight seriously, "Can you tell me more about it?"

"Yes." Qin Yi nodded, "But there is a fee to listen to this."

"what do you want?"

"That gravure press, you're out tomorrow."

"Yes." Jacob replied without hesitation, "Is there any more?"

"Also, but we'll talk about this issue later." Qin Yi changed his posture and leaned comfortably on the sofa, "I'll tell you about the British pound."

"In March 1979, the eight countries of the European Community jointly established the European Monetary System (EMS) and began to establish exchange rate links between national currencies."

“The currencies of various countries are no longer pegged to gold or the U.S. dollar, but to each other. Each currency is only allowed to float within a certain exchange rate range. Buying and selling domestic currency to intervene in the market to stabilize the exchange rate of the country's currency within the specified range."

"The German economy is the strongest, so the exchange rates between currencies of various countries use the mark as the anchor currency."

"The country joined EMS in 1990, but before it joined, the exchange rate between the British pound and the mark had stabilized at 1:2.95. Now the country's economy has obviously declined, and inflation has been rising all the way. Maintaining such a high exchange rate is a condition for joining EMS. It's very expensive."

"On February 2 this year, the European Community signed the Maastricht Treaty, but the exchange rates of many countries are artificially overvalued, such as the British pound and the lira. If the central banks of these countries are under pressure to cut interest rates and depreciate, how can they In line with Germany, which is economically strong, if something happens, will Germany sacrifice itself to save them?"

"Now the pound is facing a dilemma. After joining the EMS, the pound must be pegged to the mark. With a lower limit, it can only float within the limit of the exchange rate mechanism."

"The biggest problem now is that the country's economy is in a long-term recession. It is impossible to maintain a high interest rate policy. To stimulate the country's economy, it is necessary to lower interest rates. But because of the existence of the treaty and EMS, Germany is the anchor point, and its interest rates will not be lowered. A unilateral cut will force the withdrawal of the EMS, then inflation will not be suppressed, and the economy will be doomed.”

"But Germany was worried that the rate cut would affect its own economy, so it rejected the country's request for a rate cut."

"Now the country can't bear it at all, and can't maintain the exchange rate between the pound and the mark. This is a huge opportunity."

"Some people have long seen that the economic strength of the countries in the EMS and their respective national interests make it difficult to maintain coordination. Once some "chains" that make up the system become loose, speculators will take advantage of these loose "chains" Attack."

"And other trend followers will also follow the trend, making the exchange rate more volatile. In the end, the reliance on the trend-following mechanism is much greater than the capacity of the market to accept them, until the entire mechanism is destroyed."

After Qin Yi's long speech, Jacob was bewildered and embarrassed to say that he didn't understand. The atmosphere in the room was rather awkward.

"Okay, you just need to know that the country must maintain the interest rate between the British pound and the Mark. If someone sells short, it will buy a large amount of British pounds to maintain the exchange rate." Qin Yi added simply and clearly.

"You can ask economists for specific content to see if they think so."

"Then..." Jacob hesitated, "How can you prove that what you said is true?"

"It's very simple, if you have connections in Wall Street, you can ask if someone is increasing the size of the pound position."

Jacob thought for a while, then stood up, "I want to make a call."

"Please." Qin Yi stretched out his hand and made a gesture of please.

Jacob picked up the phone and dialed out, "William, how are you, how are you doing recently?"

"Still the same, Jacob, what are you doing calling me, you piece of shit?"

"I got a little wind recently, are you planning to look for opportunities in Europe?"

"Huh? Who told you this?" The person on the other side became alert.

"Then I guessed right?" Jacob immediately confirmed the information Qin Yi told him, "Is it Mark? Or lira or pound."

"Damn, Jacob, no matter where you hear the news, you'd better keep your mouth shut, some big people don't want to be made a fuss before things happen."

Jacob hung up the phone and looked at Qin Yi with a serious face, "If you want to cooperate, I must first know what your plan is."

"Let me show you something first." Qin Yi took out two thousand Hong Kong dollars from his pocket and put them on the table.

Jacob was a little dumbfounded looking at the two banknotes, he had never seen such a realistic counterfeit banknote.

"Let me introduce myself now. My name is Fang Zhiwei. I used to work in the financial management system of the country, and was responsible for printing banknotes and anti-counterfeiting banknotes." Qin Yi stood up and said solemnly, "My team can already A counterfeit pound sterling that's hard to tell."

Jacob's eyes widened, "Do you have any samples?"

"We still lack printing presses."

"So what are you trying to do with printing pounds?"

"I would like to ask you to help launder these pounds into European banks through your money laundering channels." Qin Yi looked at Jacob blankly, "Can you do it?"

Jacob sucked in a breath of air, "You want the country to buy back those fake pounds at its own expense."

"Yes." Qin Yi nodded, and then corrected, "It's not fake, what we do is true."

"how many?"

"It's hundreds of millions." Qin Yi said casually.

Jacob breathed a sigh of relief, "I thought you were going to print billions."

"It's not impossible." Qin Yi said indifferently, "As long as you have needs, we can print."

"what price?"

"One to ten."

"Impossible, the counterfeit dollar bill is only one to twenty." Jacob directly refused.

"But the exchange rate between the British pound and the US dollar is about 1:1.4." Qin Yi said coldly, "And your subordinates were rude to me just now."

"I apologize to you."

"Apologies are useless, only money can make it up to me."

"But it's too much money."

"Your men made me very unhappy, and that's the price." Qin Yi sneered, "We said it before, and you agreed."

"I..." Jacob was very annoyed, "Damn, I must kick his ass hard, he cost me hundreds of millions of dollars."

"This matter is too important, and I can't give you an answer now." Jacob said afterwards, "The risk is too great, and money laundering is also somewhat difficult."

"Then you look for your American friends, they should be able to eat the money."

"Then how should I contact you?"

"If you agree, your people will raise the price of the printing machine to $[-] at the auction tomorrow, and then give up." Qin Yi smiled slightly, "I will contact you when I get the information, and I will call you .”

"Damn, time is too tight."

"Good luck." After Qin Yi finished speaking, he turned and opened the door, and walked out.

At this time, the bodyguards in the corridor were happily chatting, when they suddenly saw a stranger coming out of the room, the two of them were dumbfounded.

When Qin Yi passed the fat man, he pointed his middle finger, "Fake squid, fat man."

The fat man blushed immediately, and just about to catch up, a voice came from the room, "Tim, come in."

Fatty spat at Qin Yi's back unwillingly, turned and entered the room, "What's the matter, boss."

A chair smashed towards him, knocking the fat man to the ground.

Jacob came over and kicked the fat man hard.

……

Qin Yi quickly walked out of the hotel and disappeared into the dark alley. After changing his coat and appearance, he slowly returned to the hotel.

Pushing open the door of the room, I found that the three of Li Xiangdong had already gone back to sleep in the next room, and Sharpei was still tinkering with the safe.

"Brother Shapi, you really can't use a flame cutter." Qin Yi said casually.

"No, no, don't bother me, it will be fine soon." Sharpei said a little unhappy.

Qin Yi yawned, ready to take a good night's sleep and supplement the reduced traffic that empowered Ruan Wen.

"Click."

Sharpei suddenly jumped up in surprise, "I opened it."

Qin Yi subconsciously glanced at the opened safe, and found streaks of golden light coming out of it.

"Wow, get rich!"

Sharpei took out a dozen gold bars from it, as well as a large amount of U.S. dollar bills. The initial estimate of the cash was millions of dollars, as well as bonds.

The most valuable thing is a thin piece of paper, which is a Swiss bank cashier's check that often appears in Hong Kong movies.

It has $500 million on it.

　The background of the British pound crisis has been simplified as much as possible. If you don’t understand it, you can go to Baidu to read it.

　　
　
(End of this chapter)