Chapter 433: Uncontrolled Appreciation
Although due to the overwhelming public opinion from the outside world, Baichuan Feng was forced to close the door to visitors.
But this does not mean that he has nothing to do. On the contrary, ordinary people cannot find him, but it does not mean that people with special identities cannot contact him.
"Please rest assured, Takeshita-san. For the development of Neon, Hokuto Bank will do its utmost to help! ... Hi! ... This fund will not be moved for the time being. Please let me know if you need it..."
After hanging up the phone, Baichuan Feng breathed a sigh of relief.
Recently, there are quite a few people who have frequently talked to him.
Not to mention the presidents of several major chaebols, now even the Finance Minister Noboru Takeshita has come to visit.
The man who signed his name on the Plaza Accord had no other business to talk to Shirakawa Feng about.
The first thing is to tell Shirakawa Kaede that Kitato Bank should stop selling US dollars and copy the appreciation of the Japanese yen.
The Plaza Accord's interim goals have been achieved, and the appreciation rate of 14% has far exceeded the government's expectations.
The remaining 6% appreciation space in the agreement will be achieved by the Bank of Japan itself, but the cycle will be extended to one year later.
Second, the income earned by Shirakawa Holdings in the foreign exchange market through Kitato Bank is legal income.
However, in order to stabilize Japan's economic environment, the Ministry of Finance hopes that Shirakawa Kaede's 4.2 billion US dollars will not be converted into Japanese yen for the time being.
Because converting US dollars into Japanese yen is equivalent to selling US dollars and buying Japanese yen.
On the other hand, it is still driving up the yen. The Japanese government obviously wants to slow down the appreciation of the yen, and of course it cannot add fuel to the fire.
Therefore, the U.S. dollars in Shirakawa Holdings' foreign exchange account will not be moved for the time being, and if necessary, it will even assist the Japanese government in manipulating the exchange rate in both directions.
For example, if you want the yen to continue to appreciate, then sell the US dollar; if you want the yen to cool down, then keep it as it is.
Of course, the Japanese yen is still appreciating now.
Shirakawa Holdings' $4.2 billion has remained unchanged, which means it is losing money.
Therefore, in order to compensate him, the Ministry of Finance will, at an appropriate time, push the Kitato Bank to transform from a local bank to a metropolitan bank.
There are many types of banks in Japan, such as city banks, local banks, second local banks, new-type banks, policy financial institutions, trust banks, etc.
There is no doubt that the largest banks are all in the urban bank category, such as Mitsubishi Bank, Dai-ichi Kangyo Bank, Mitsui Bank, Sumitomo Bank, etc.
Although the current Beidu Bank already has many branches across the country, strictly speaking it still has the characteristics of a local bank.
There is still a long way to go if we want to turn Kitato Bank into a truly urban bank with presence across the country.
The quickest way is to merge with other banks and quickly expand in scale.
However, bank mergers require review by the Ministry of Finance, which can sometimes act as an intermediary.
Now that the Ministry of Finance has expressed its intention in this regard, there is no reason for Shirakawa Feng to refuse.
Besides, even if the Ministry of Finance does not promise any benefits, Shirakawa Kaede will not go against the government agencies, and he does not care about the slight loss of interests.
Of course, it would be great if the Ministry of Finance was willing to lend a helping hand to Kitato Bank at certain times.
When will be the best time for Kitato Bank to join the ranks of large urban banks? Of course, it will be a few years later when the dumplings are under the roof.
Even more boldly, it is not impossible for Kitato Bank to grow into a super-large financial group.
But that’s all later. Now Baichuan Feng has his own things to do.
He had just agreed to a request from Takeshita Noboru of the Ministry of Finance when Shirakawa Kaede contacted Arai Yu again.
"Arai-san, for the next period of time, our overseas accounts will continue to buy yen!"
Kitato Bank may not copy the appreciation of the yen, but Shirakawa Kaede did not say that his other funds also abide by this rule.
As long as he can make money, Baichuan Feng doesn't care whether he is the Ministry of Finance or the Ministry of Ksitigarbha.
Kitato Bank gave the Ministry of Finance a favor, and he wanted this obvious benefit.
At the same time, he continued to speculate on the yen in private, becoming the vanguard of promoting the bubble economy, and Shirakawa Kaede was no exception!
You see, we pushed Neon into the abyss, and he has to thank us.
There are tens of thousands of these overseas accounts, and they are not under the supervision of Japan.
Therefore, there is no need to worry about freedom.
When Arai Yu heard Shirakawa Feng's instructions, he nodded and agreed without hesitation.
As a practitioner in the financial industry, it is instinctive to manipulate the funds in your hands to make continuous profits.
As long as it's not illegal, everything is fine.
As for whether doing so would hit Neon's economy, sorry, that's not something he should consider.
Since Baichuan Feng has chosen to stand on the side of the market, he just needs to execute.
He is old, but the younger generation of his family is still young.
If nothing unexpected happens, these younger generations will serve the Shirakawa Group for the rest of their lives.
Such an opportunity is something that ordinary people cannot even ask for.
Because that is another class isolated from ordinary people, and ordinary people may not be able to get the entry ticket in their lifetime.
The fate of each family is deeply intertwined, and Arai Yu only needs to faithfully carry out orders.
It seems that this third game will be a protracted war.
Yes, the game among all parties after the Plaza Accord is far from over, and has even just begun.
The first game surrounding it was the game between the United States and the other four countries over the exchange rate appreciation range.
The second game is between the Five-Nation Alliance and the foreign exchange market.
At present, the Five-Nation Alliance is on the verge of victory.
But there is a third game, that is, the market and the Five-Nation Alliance... No!
It should be said that it is a game between speculators who drive up the yen and Japan.
When the Five-Nation Alliance was formulating the agreement, it deliberately blurred the scope of exchange rate adjustments.
Now that the US dollar has plummeted and the Japanese yen has surged, speculators have flocked to the Japanese yen again.
The market has never been rational. Buying high and selling low is the common psychology of speculators.
But this time, Baichuan Feng decided to abandon the Five-Nation Alliance and stand on the side of the market.
He only wants to make money, and things like national economic development are not something he needs to consider.
The financial markets have always been like this, ruthlessness is the norm.
However, this time we cannot be as reckless in speculating on the Japanese yen as before.
He only knows that the Japanese yen will continue to appreciate in the next few years, but he doesn't know the specific fluctuations.
If it continued to rise like he remembered in the first few days, it would be fine.
But if there is a slight fluctuation range, the 100x leverage cannot withstand a 1% drop and his position will be liquidated.
So this time, we should play it safe and develop slowly.
Thinking of this, Baichuan Feng continued to explain.
"Most of the previously profitable U.S. dollars were slowly converted into international currencies such as Japanese yen and British pounds.
Carry out long-term operations with a term of one month.
However, the leverage ratio in foreign exchange transactions should be controlled at around 5 to 10 times and should not be too aggressive.
In addition, in terms of principal, the total amount under multiple accounts shall not exceed US$5 billion. This is the bottom line.”
Although the nominal profit was more than 100 billion US dollars, there were still various fees before tax.
In the end, I would be lucky if more than 80 billion yuan actually ended up in my pocket.
Moreover, I can’t get the money in my hands in a short period of time. I can only wait for one or two years for the money to be concentrated into several different overseas accounts like ants moving house.
Of course, this money has to be slowly converted into other currencies now, after all, the US dollar has been falling. If you hold it in your hand for one day, you will lose money for one day.
After all, money can't just sit there and do nothing. The right thing to do is for money to make money.
You don't need a lot, just take out a small portion of it and continue to exchange yen in the foreign exchange market, and you can continue to make money.
Although the leverage ratio is not high, it is definitely higher than the manufacturing profit under Shirakawa Holdings.
If you think about it carefully, it is no wonder that most companies are busy speculating in stocks instead of investing in technological research and development.
The financial industry does make money quickly, and most people simply cannot resist such temptation.
In short, in early October, Kitato Bank stopped its operations, but Shirakawa Holdings' overseas accounts were still in operation.
And because Kitato Bank had made a fortune in the foreign exchange market before, many financial institutions in Japan also began to flock into the foreign exchange market.
In addition, Kitato Bank has accepted operation orders from many retail investors. The number of people speculating in foreign exchange in Japan has not decreased but increased.
Because since last year, Japan has gradually achieved financial liberalization.
In terms of foreign exchange control, the intensity of supervision has been greatly reduced.
Therefore, many individual retail investors can play in the foreign exchange market, and the government has no way to prohibit this behavior.
After all, it is easy to talk to a few major banks, but how to restrain hundreds of small financial institutions and more retail investors?
However, the market has already reacted by this time, and no one dares to go long on the US dollar or short on the Japanese yen anymore.
Therefore, although the Japanese yen continues to appreciate, profits have dropped significantly and the opportunity to get rich overnight will basically never reappear.
However, due to speculation and herd mentality, the number of people speculating in foreign exchange in the market is still increasing.
Coincidentally, not only Japan, but also the member countries of the Paris Club internationally are continuing to sell US dollars.
The members of the Paris Club include the G7 countries as well as Netherlands, Pele, Switzerland and Switzerland, who sold a total of US$10.2 billion.
The appreciation of the currencies of these countries is not large. The British, German and French francs have generally appreciated by around 7% to 8%.
This is still a little short of the 10% bottom line in the agreement, so they are under no pressure at all to appreciate the currency.
So after selling the US dollars, what do they buy with the rest, besides buying some of their own currency?
Of course it is the Japanese yen. Now the entire foreign exchange market is chasing the Japanese yen.
It doesn't make sense to look at the opportunity to make money right in front of you and do nothing.
So despite the Japanese government's emergency brakes, the yen is still appreciating.
As of the end of October, the exchange rate of the Japanese yen to the US dollar has reached 1:205!
The original estimate was to achieve a 20% increase within a year, but the actual increase was 18% in just one month.
Not only that, during this month, the currencies of several other countries in the world have also been rising.
Obviously, influenced by the vague communiqué of the Plaza Accord, speculators in the foreign exchange market focused their foreign exchange speculation on the other party to the agreement whose currency appreciated.
Of course, the Japanese yen appreciated the fastest among them, which makes it the most conspicuous.
At this time, the Japanese yen was not only rising rapidly, but was even in danger of getting out of control.
The Japanese government is trying to cool the situation, but it has not attracted enough attention.
Because most people, seeing the strong performance of the Japanese yen, are even secretly happy in their hearts.
Sure enough, the goal of "strong Japan, strong yen!" is really exciting.
The sight of the foreign exchange market frantically chasing the Japanese yen makes all Japanese feel proud.
Lo and behold, Japan's time has arrived.
