1997 During the Asian financial crisis, the Thai baht was targeted by these Wall Street financial giants.
Their practice is to buy a lot of Thai baht through many institutions, many channels and many accounts.
Then one day it suddenly sold sharply, and then the price of Thai baht plummeted in the international market. .
In order to maintain the stability of the national currency, the Thai government had to buy Thai baht in US dollars.
However, the foreign exchange reserves of a small country simply cannot compete with the huge funds of these international financial speculators. It was quickly defeated. . The Thai baht depreciated sharply.
They borrow money at the interest rate of money; Sell money in the spot market and change it into dollars; Lend the converted dollars at the interest rate of dollars. When the currency depreciates or the spread between the currency and the dollar widens, speculators will make a profit. International speculators hit each other through the joint operation of the foreign exchange market and the stock market, lowering the exchange rate and achieving the ultimate goal of transferring each other's wealth to their own hands.
Simply put, it is to profit from the exchange rate difference, as well as the stock market. The stock market of the attacked country will plummet.
Hurricane Soros quickly swept through Indonesia, the Philippines, Myanmar, Malaysia and other countries. The Indonesian rupiah, Philippine peso, Myanmar dollar and Malaysian ringgit depreciated sharply, leading to terrible scenes such as factory closures, bank closures and rising prices.
Hurricane Soros, which swept through Southeast Asia, swept away billions of dollars of wealth at once, and reduced decades of economic growth in these countries to ashes.