Golden Spoon Investment Portfolio - Chapter 321

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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321. No! Why is this happening?!

“Waaah!”
“We did it!”

The Bank of Thailand’s foreign exchange officers, who had been desperately holding back the relentless assault from the hedge funds led by George Hamilton, erupted in cheers that shook the office as the situation reversed dramatically with massive support fire from the central banks of Hong Kong and Southeast Asia.

[THB : 26.18 (
1.21)]

Unable to contain their excitement, people jumped from their seats, embraced each other, clenched their fists, and radiated joy with their entire bodies.

“We won! We actually won!”
“Take that, you hedge fund bastards. How does it taste?”

Piyapong watched the baht-to-dollar exchange rate surging on the monitor as if the fierce battle from moments before had been a lie, leaning back in his chair and exhaling a deep sigh of relief. Meanwhile, Damthatuey, the center director whose expression had been rigid, loosened his face slightly and clapped his hands loudly.
Director Damthatuey, whose expression had been stiff until then, loosened it slightly, clapped his hands, and shouted loudly.

“Everyone, listen up!”

The applause and cheers gradually subsided, and all eyes turned toward Damthatuey.

“I understand your joy, but the fight with the hedge funds isn’t completely over yet! So calm down and push the exchange rate even higher so those bastards never dare to attack again. Let’s teach them a lesson they won’t forget!”

Then Piyapong, still seated, looked at Damthatuey and asked.

“What’s our target exchange rate?”
“There isn’t one. The central banks of Hong Kong, Singapore, and Malaysia have formed a united front. From now on, we’re going to sweep up all the baht and terrify those hedge fund bastards.”

The foreign exchange officers who heard this roared with enthusiasm, rekindling their fighting spirit.
After being beaten down almost one-sidedly until now, the prospect of launching a counterattack was exhilarating.
Damthatuey, conscious of the hopeful gazes around him, tensed his body and spoke with conviction.

“We’ve been approved for an additional one billion dollars from above, so let’s trigger a short squeeze that will crush those hedge fund bastards!”

Then one of the foreign exchange officers suddenly interjected and responded to Damthatuey’s words.

“So we’re going to crush the arrogant pride of George Hamilton, who brought the Bank of England to its knees? Just imagining it sends a thrill down my spine!”
“Wahahahaha!”

At the playful remark, my colleagues around me burst into laughter.
Piyapong, his face rough with stubble from not having shaved, smiled along with them.
A short squeeze referred to a situation where traders who had shorted a particular stock or commodity, anticipating a price decline, were forced to liquidate their positions at a loss when prices rose contrary to expectations.
Most of the hedge funds attacking the baht had taken short positions in both the futures and spot markets using leverage.
Because of this, as the exchange rate plummeted, they had no choice but to frantically repurchase the baht they had been selling indiscriminately to minimize losses.
In that process, the baht’s value could only rise further, and the magnitude of that increase translated directly into losses for the hedge funds.
As the central banks across Southeast Asia poured out dollars and swept up baht, the baht exchange rate had already broken through 26 baht per dollar and surged to 25 baht.
Though the scales were clearly tipping in favor of the Thai government, Piyapong felt an inexplicable unease and discomfort as he stared at the exchange rate chart displayed on the monitor.

“Will George Hamilton and the hedge funds really abandon their attack on the baht after this…”

Though we had barely weathered the crisis with the help of the central banks of Hong Kong and other Southeast Asian nations, our foreign exchange reserves had been severely depleted in defending the baht, which made me all the more anxious.

***

The Executive Office of Quantum Fund on 7th Avenue, Manhattan, New York.
George Hamilton, sitting on the sofa with one leg crossed, spoke calmly while watching the baht exchange rate chart displayed on the monitor in front of him and the CNBC broadcast on the television screen.

“So the central banks of Hong Kong, Singapore, and Malaysia have stepped in to form a united front. We were caught off guard.”

Though the attack, which had begun by pouring a billion dollars at once, had failed due to an unexpected variable and resulted in considerable losses, George Hamilton maintained his composure without any visible change in expression, remaining coldly detached.
At George Hamilton’s indifferent tone, Rodney, the CIO seated to his left, spoke up in response.

“I should have anticipated this situation beforehand. It’s my mistake.”

George Hamilton reached for the teacup in front of him, but seeing that the coffee had gone cold, he set it back down and spoke.

“I knew that the Thai government had signed an agreement with other Southeast Asian nations to help each other in the event of a foreign exchange crisis, but even I didn’t anticipate they would actually move like this. So I can’t say it’s your fault.”

Then Ian, the Chief Manager seated to his right, naturally interjected with a note of regret in his voice.

“Looking at how the Thai government has imposed a dual exchange rate system and banned baht loans to all financial institutions, including foreign banks with branches in Thailand, it’s clear they’ve been backed into a corner. It’s truly unfortunate.”

The dual exchange rate system meant that the official exchange rate announced by the government and the rate applied in the market existed separately.
And the ban on baht loans was to prevent speculators, including hedge funds, from getting their hands on any more baht currency.
It was clear as day that Thailand’s government and the Bank of Thailand would face disadvantages in the international financial market, yet the fact that they were taking such extreme measures was proof that the situation was so urgent they had no time to consider alternatives.
Just then, the keyphone on the desk rang, and Ian Chief Manager reached out with one hand to press the speakerphone button.

“What is it?”

The voice on the other end came through urgently with breaking news.

[The Bank of Thailand just announced they’re raising the three-month interbank rate from 13% to 19.5%!]
“Is that really true?”

Ian Chief Manager asked in surprise, and the answer came back immediately.

[Yes. An emergency announcement was made through NBT, Thailand’s state broadcaster, and Bloomberg and Reuters are also running the breaking news!]
“Tsk.”

Seeing the breaking news scroll across CNBC, which was playing in the background, George Hamilton crossed his arms and clicked his tongue.

“Understood. Let me know immediately if any other news comes in.”

Watching George Hamilton’s expression, Ian Chief Manager turned off the speakerphone for now.

“To raise interest rates by 6.5% all at once—it seems Thailand’s government is really determined.”

At Rodney’s words, George Hamilton leaned back in his chair and asked in a somewhat subdued voice.

“Are the three central banks still buying baht?”

Ian Chief Manager quickly checked the Bloomberg terminal and answered immediately.

“Yes. The total purchases so far have exceeded 5 billion dollars.”
“Are you thinking of matching their fire?”

Rodney looked at George Hamilton with a serious expression and asked. Though they were clearly facing a formidable opponent, the Quantum Fund hadn’t exhausted all its resources yet, and there were other hedge funds as well, so it seemed worth engaging.
Ian Chief Manager also leaned forward in his seat, his eyes gleaming with determination.
Ian, the chief manager, also leaned forward in his seat, his eyes gleaming with enthusiasm.

“Hong Kong may be a bit reluctant, but they won’t exhaust all their foreign reserves helping Thailand. If we push hard a few more times, they’ll definitely withdraw from this fight.”
“Hmm. I’m not so sure….”

George Hamilton stroked his chin thoughtfully for a moment, then suddenly recalled that Seok-won had bet on a long position in the baht.

‘He’s incredibly fortunate. Or did he anticipate all of this from the beginning? But if he takes the opposite side next time, he’ll have much to regret.’

George Hamilton muttered coldly to himself, then steeled his resolve and lifted his head.

“As you say, the prey is too valuable to abandon here. But it’s best to avoid the storm, so let’s withdraw for now.”

Both men understood well that a direct confrontation now would result in excessive losses even in victory, so they carefully concealed their disappointment.

“As you wish.”
“Understood.”

Hearing their responses, George Hamilton fixed a sharp gaze on the TV screen, where Warit, the Governor of the Bank of Thailand, was announcing an interest rate hike.

“He acted boldly enough, but soon he’ll realize that what he’s done now is poison. That moment will be when the baht’s lifeline is severed.”

***

By now the sky outside the windows had grown pale with dawn, yet the Trading Floor of Eldorado Fund still radiated intense heat.

“Following Asia, Southeast Asian central banks continue to buy baht in the London Foreign Exchange Market!”

Despite having worked through the night, everyone was brimming with energy, buoyed by profits from the rising baht.
Seok-won stood with both hands in his trouser pockets, gazing at the large market board mounted on the Trading Floor wall, and asked.

“What’s the exchange rate now?”
“24.5 baht per dollar.”

Landon Shore answered with a delighted expression.
The exchange rate had risen two baht from when the hedge funds first launched their attack.

“With the baht rising this much and the hedge funds showing no significant counterattack, it looks like round one will end in Thailand’s victory, just as the boss predicted.”

Andrew also spoke with a smile playing at his lips.

“They probably never anticipated that Hong Kong and other Southeast Asian central banks would intervene. For now, they’ll need to pull back and reassess the situation.”
“And once they’ve regrouped, they’ll attack again, won’t they?”
“Now that they know their opponent is formidable, they’ll come back even more ruthlessly and overwhelmingly.”

Landon Shore rested his chin in his hand with a thoughtful hum.

“In that case, Thailand—already exhausted from expending nearly all its strength this time—will have a hard time defending against another assault.”
“Even a lion struggles to survive when surrounded and attacked by a pack of starving hyenas. Expecting Thailand to hold out would be asking too much.”

The two men nodded in agreement.

“Right now, with Thailand and the Southeast Asian central banks sweeping up baht in massive quantities, we’re at the peak. Liquidate all positions.”
“Understood.”

Andrew immediately went to Tyler and relayed the instructions.
Seok-won glanced at the baht exchange rate glowing red on the screen, then turned away without another look, leaving the Trading Floor.

***

Meanwhile, as the baht surged, there was another place erupting in cheers—Japan’s Big Four Securities Firms, which had entered into CDS option contracts with Eldorado Fund.

“That’s right!”
“We’re saved!”

Nakamura Shoichi, the department head who hadn’t even left work and had spent the night anxiously watching the brutal battle between Thailand and the hedge funds, slammed his palm hard against his desk as he heard his subordinates’ cheers.

“Hahahaha!”

Nakamura Shoichi laughed with the brightest expression he’d shown in days.
It was because he expected that once the foreign exchange crisis that had been shaking Thailand’s economy came to an end, the stock market that had been plummeting would also rebound.

“Those Eldorado Fund bastards. They made ridiculous demands, and now look at them!”

Okamura Hideo spoke with barely contained excitement.
Nakamura Shoichi, who had been wearing a gloomy expression ever since the Thai SET Index began its sharp decline, laughed heartily as if none of that had ever happened and responded.

“At least we avoided the penalty.”
“Exactly. This is all thanks to your wise judgment, sir.”

Okamura Hideo stuck close to Nakamura Shoichi’s side, his expression brimming with satisfaction.

“You must be exhausted. Why don’t you head home now? There’s nothing left to worry about, is there?”

Nakamura Shoichi rolled up his sleeve and glanced briefly at his watch.

“The Thai stock market should open soon. Let me just watch until then.”
“Would you like some coffee?”
“That would be appreciated.”

Okamura Hideo nodded with a quiet “yes” and gestured toward the uniformed Female Secretary.
Moments later, Nakamura Shoichi settled into his chair and sipped his coffee leisurely, waiting for the Thai stock market to open.
Just as he was finishing the cup, Okamura Hideo spoke from beside him.

“It’s opening now.”
“I see. You’ve all worked hard these past days. Once we confirm the index rebounds, go home early and get some rest.”
“Thank you.”

The moment the Thai stock market opened, Nakamura Shoichi casually checked the monitors—but his eyes widened in shock as the SET Index plummeted dramatically from the opening bell, and he shot to his feet with a stunned expression.

“What?! Why is this happening?!”

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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