Extraordinary Genius Chapter 924 – Floating Rates

“This is your company? Why are there so many people cramped in this small office, and it’s still so messy?” Feng Xingtai criticized when he visits Wind and Rain Consulting Firm.

“Dad, I am trying to save s.p.a.ce. Do you know how expensive is the rents in Hong Kong?”

“How expensive is it? Can it be more expensive than Beijing?”

“It’s eight times of Beijing!” Feng Yu said.

“Huh?! This run-down place and building cost eight times more than Beijing? This is daylight robbery! You this good for nothing, son! Why did you get such an expensive office?!” Feng Xingtai almost jumped on Feng Yu.

“That’s why I had bought this building two years ago and had rented out most of the offices.”

Feng Xingtai immediately smiles. “Ah… Does this building belong to us? High rentals are understandable, as Hong Kong is a small place after all!”

Feng Yu smiled and shook his head at his father’s sudden change of att.i.tude.

“Dad, I will be busy these few days, and Guangzheng will accompany you all around Hong Kong. I can only visit you all at night.”

Thailand’s Government cannot last any longer and will adopt that ‘apparently correct’ measure anytime. After that, Thai Baht will plunge.

Now, Thai Baht rates against the USD had dropped to 28:1. Tonight, it might plunge further as the Thai Government had already used up all the money they had borrowed. But they were still no match for Soros and his men.

Feng Yu must monitor the market closely before the Thai Government implemented new measures.

“Ok. I can understand you are doing this for the country.” Feng Xingtai moved closer and said softly.

Feng Yu was puzzled. For the country? I am making money for myself. Feng Yu noticed Fu Guangzheng winking at him and did not say anything.

All offices look the same, and there’s nothing interested. Feng Xingtai stayed in the office for a while and was brought away by Fu Guangzheng. The rest were waiting for him, and they had come to Hong Kong as a tour group.

Li Na’s parents were with them, but they did not go to the office. They remained in the vehicles with Li Na.

Feng Yu had impressed Li Na’s father this time. Li Na and Li Shiqiang had given up their seats for them during the ceremony.

Li Na’s father had approved Feng Yu now. He felt Feng Yu is a good man and took care of good them.

Feng Yu asked Li Na’s parents to stop working and move to Beijing. But Li Na’s father refused. It’s not that he does not want to leave his job or go to Beijing. He did not want to live with his son-in-law and to be seen as someone taking advantage of Feng Yu. How will others look at him, especially Feng Yu and Li Na are not married yet?!

If Li Na’s father is retired now, and Feng Yu and Li Na have children, he doesn’t mind moving to Beijing to take care of his grandchildren.

“Boss, you are so lucky. My parents are not around when I become successful.” He Zhaoji sighed.

“Then you must work harder for your wife and children. After this round, you will have enough money to retire immediately!” Feng Yu patted He Zhaoji on his shoulder and said.

“I still do not want to retire so early. If you don’t fire me, I can still work for a few years.” He Zhaoji laughed.

“No problem. Work hard, and I will take care of all of you. Get ready, all our Thai Baht. Once the Thai Government announced, they will switch to floating exchange rates, quickly dump them with Soros. We must break the people’s confidence in the Thai Government!”

“We are already prepared and are waiting for the announcement.”

Yesterday, all of them were watching the handover ceremony, and everyone’s eyes are still red from lack of sleep.

Their office is different from other offices. Most offices have coffee machines or tea, but their office uses blue canned Qili drinks. This beverage is an energy booster.

……

“General, we can only use this method now. We can’t borrow any more money, and Thai Baht will continue to drop. Our Fixed Exchange rate can’t work anymore.” Basong suggested.

Fixed Exchange Rates had failed, and they had used up all the money they had borrowed. If the money they borrowed was transferred to them at once, they could still struggle for a while more. But the funds they borrowed had come in batches.

Now, the Thai Government can only give up on Fixed exchange rates for Floating exchange rates to attract more investors to buy Baht, and it’s the only way to deal with Soros.

This method is digging their graves. Although it seems to be a good solution, it is useless.

This is the Thai Government’s last resort. They felt that because of supply and demand, there should be a shortage of Baht in the market as they had bought a significant amount of Baht.

This way, Soros will be facing not only the Thai Government, and the Thai Government will not be restricted within the confines of Fixed exchange rates.

Most importantly, Thailand had an agreement with many countries in Southeast Asia. Those countries have a large amount of Baht in their reserves, and if they don’t want to lose money, they must help to pull up Baht’s value.

Basong felt this method would force the other countries to join them against Soros. Although this will not let Baht’s rates return immediately, at least it will stop it from dropping further.

If Baht’s rates fall below 30:1, then Thailand will go into hyperinflation!

“Are you sure this will stop Baht from depreciating?” Chavalit asked suspiciously.

“This is our last resort. Floating exchange rates will adjust itself based on market events, and it is useful to control large scale financial crisis. It is suitable for a situation like ours.”

What Basong said are the theoretical advantages of the Floating exchange rates. But given his level of expertise, floating rates will cause more damage to their economy and exposed all the problems within Thailand’s economy!

But luckily for Basong, Chavalit knows nothing about these. The newly appointed Finance Minister knew about the consequences of using Floating rates, but he does not have any other solutions. As such, he chose to keep quiet, and he does not want to be a scapegoat like his predecessor.

If this measure works, the newly appointed Finance Minister can get some credit. But if it fails, Basong will be responsible!

“Alright. If Thai Baht continues to fall tomorrow, announce that we will be adopting the Floating rates system. The Thai Government will no longer regulate the rates!” Chavalit made his decision. Although he does not know about finance, he knows that without regulations, it will be more dangerous.

But in the current situation, Chavalit had no other choices.