"Radish Head, we need to have a large number of financial companies in the European market, and London is the first stop. I hope you will solve this problem first."

Financial company?

Robert John was a little confused.

The so-called financial company mainly refers to short-term lending companies, which can also be understood as usury.

Of course, formal financial companies and black people will lend usury are different. Commercial banks often attach great importance to collateral. Without collateral, they cannot obtain loans from banks.

Everyone lacks money.

If money is needed and the mortgage has a reputational risk, the bank will raise the interest rate or cut off the loan according to the risk ratio, or the bank's reputation loan needs to be used after the maturity, but it must be returned to fulfill the contract before the application will continue. At this time, the use of the financial company will be reflected.

You can borrow funds at better risk, or you can help with some loans to perform bridge loans.

Many financial companies in Hong Kong have always done a great job in this regard. With their high interest rates and leverage in operating financial products, they are very good at making a difference.

However, in recent years, the UK economy has been sluggish. The Bank of England has continued to implement a low-interest rate policy, and the benchmark interest rate has been maintained at 2.2%. If financial companies make a living by lending such an interest rate, they will not make any profit.

"Boss. The benchmark interest rate of the Bank of England has been maintained at 2.2%, and the European Community countries have also maintained the same interest rate. I think it is not a good idea to open a financial company in Europe."

"No, no, radish head, listen. We open a financial company, not a financial company, we just open a financial company, so we open a financial company."

“…”

Robert John is a Huaxiatong.

However, Shen Jiannan's words were still confused.

He glanced at his ex-wife family who was about to get up not far away, and said quietly.

"Boss. I don't understand what you are talking about."

"Radon Head, Leisen. The interest rates implemented by European countries have always been 2.2%.

"Diet at night. This interest rate, financial companies have no room for survival."

"What if there is a country with very high interest rates and foreign exchange prices are fixed?"

Robert John understood immediately.

"Boss. Are you talking about Thailand? God. Boss, you are such a genius. Why didn't I expect it?"

"Understood?"

"Damn it! I'm so stupid. Oh my God, boss, we're going to get rich."

Holding the phone, Robert John shouted excitedly.

Before, he had been in China. As the head of Standard Chartered China, he was very clear about the exchange rate in the Asian market.

The currency of Thailand is Thai baht.

Before 1897, one zhu was equal to 8fuang, and one fuang was equal to 8att. The current decimal system was determined by Rama V.

However, before the 1940s, the name was tical, and it was later changed to baht. Originally, baht was a unit of weight, equivalent to 15 grams. Since one tical was equivalent to 15 grams of silver, I simply used baht as the name.

After the silver standard was broken in 1902, the baht was no longer linked to sterling silver because the silver price depreciated significantly relative to the gold standard. On September 19 of that year, Thailand issued the first batch of paper notes with a face value of 5, 10, 20, 100 and 1,000 tical.

By 1963, the Thai government announced that the gold content of the Thai baht was 0.0427245 grams, the official exchange rate was 1 US dollar equal to 20.80 baht, and the floating exchange rate was stopped.

However, as the Brynsenton system was shattered and the US dollar was depreciated. The Thai government announced that the Thai baht was decoupled from the US dollar and was pegged to a package of currencies. The Foreign Exchange Level Foundation announced the purchase and sale price of the Thai baht against the US dollar, and restricted the foreign exchange trading price of commercial banks.

On November 5, 1984, the Thai baht depreciated by 14.8%, with the official exchange rate of 1 US dollar against 27.15 baht, and then the Thai baht appreciated.

But starting from 1985, Thailand's economy grew miraculously, and at an astonishing growth rate, it jumped to the four Asian tigers. What's even more incredible is that Thailand's inflation rate has been low, which shows that the basic market is very good and there is a broader space.

In order to leave room for operation for the economy when it is exhausted and to avoid excessive capital speculation, the Bank of Thailand has repeatedly raised interest rates, raising the benchmark interest rate to 6.8%.

The central bank changes the benchmark interest rate in general to leave operational space for the economic volatility cycle. Raising interest rates is often because the economy is improving, suppressing inflation and speculativeness, and leaving operational space for the economic cycle to change.

Just like a trump card, the higher the interest rate, the better the national economy, the greater the operational space left, and the lower the interest rate, the smaller the operational space. Generally, when the central bank lowers the interest rate to 0, it means that a country has all the trump card and no longer has the ability to intervene, and can only hand over its destiny to God.

The Bank of Thailand has raised interest rates continuously, and this book is nothing.

Thailand has become the four Asian tigers, and its economic development level is showing signs of catching up with Hong Kong and Singapore. Raising interest rates may curb inflation and reducing speculative capital flows are the correct operation.

However, at the end of 1990, the Thai government determined the circulation policy of free trading of the Thai baht in the global foreign exchange market, and adopted a fixed exchange rate system to link the Thai baht to the US dollar exchange rate, and implemented a fixed exchange rate system for pegging the US dollar. 1 US dollar = 25.29 baht, and the exchange rate is limited to the floating range of 0.15% to 0.16%.

If all is the case, there is no problem.

In 1991, Japan's stock market plummeted sharply, and then the real estate bubble burst, and Japan's market capital fled a lot.

As the world's second largest economic system, the amount of capital accumulated by the Japanese market can be imagined. In order to strengthen the absorption of overseas capital, Thailand announced in May last year that it would fully liberalize financial controls and no longer interfere with overseas capital inflows.

In addition, the Thai government announced that Thailand has information to build a fair and free financial center. It will fully liberalize the financial industry in 1993, approve the establishment of options financial centers in Bangkok, relax restrictions on foreign banks to establish branches in Thailand, and allow international capital to trade in options financial centers in Bangkok.

what does that mean?

This means that now that funds flow into Thailand, there will be no more interference.

However, Thailand is enforcing a fixed exchange rate system for US dollar, but the interest rate is 6.8, while the interest rates of the European Community countries are almost 2.2%.

Robert John was so excited that he almost went crazy.

"Boss, are you saying that we borrow funds from major European banks and then arbitrage in Thailand?"

arbitrage?

Is I such a terrible person?

Holding the phone, Shen Jiannan couldn't help but quiver.

Although you can make money by borrowing chickens and laying eggs, what does this amount of money count?

Calculate the time, the people on Wall Street are about to take action against the European Community. At that time, lending them money is the most interesting thing.

Shen Jiannan praised with a sinister smile on his teeth.

"Old Radish Head. Congratulations, I've answered correctly. I'll rush over as soon as possible. Now, you need to build the financial company platform as soon as possible."

“….”

Hang up the phone, Robert John was still so excited that he couldn't hold on to himself.

As a banking practitioner, he knows very well that risks are always proportional to returns. There has never been a stable investment in this world that can make profits and not lose money.

However, he suddenly realized that this law seemed to be broken.

Thailand is a country, and behind major European banks, there is no risk in arbitrage in Thailand with the money borrowed from the banks here.

"Praise God. The glory is with me."

"Robert...is it you?"
Chapter completed!