Golden Spoon Investment Portfolio - Chapter 335

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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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335. Then the second option contract will be triggered as well.

Nihonbashi, Chuo Ward, Tokyo, Japan—Nomura Securities Headquarters.
Usami, wearing a striped necktie, sat at his desk and stared intently at the Indonesia Stock Exchange chart displayed on his monitor.

[IDX : 615.20 (▼10.17)]

The Indonesian stock market, which had soared well past 700 points with an upward trajectory, now crumbled helplessly under the foreign exchange crisis sweeping through Southeast Asian nations, and was already dangerously approaching the 600-point mark.

“Damn. At this rate, we’ll breach 450.”

If that happened, another option would trigger, forcing Nomura Securities to pay an additional 1 billion dollars to the Eldorado Fund—the mere thought made him dizzy.
Frustrated, Usami loosened his necktie knot with a rough hand and stubbed out the cigarette that had burned down to the filter in the ashtray.
Just looking at the cigarette butts piled high in the ashtray revealed the state of Usami’s mind.
He pulled out a fresh cigarette, placed it between his lips, and had just lit it with his lighter when a sudden knock came, and Nakamura Shoichi, the head of the Derivatives Business Division, burst through the door.
He approached with a flushed, excited face and stood before the desk.

“Executive Director! Have you heard the news?”

Usami, already in a foul mood from the continuously falling Indonesian stock market, frowned and rebuked him.

“What’s with all the fuss?”

Normally, Nakamura would have been cautious and measured, but for some reason, the division head was brimming with excitement.

“Just moments ago, the Bank of Indonesia announced they’re dramatically expanding the exchange rate band from the existing 8% to 12%.”

At this unexpected good news, Usami jumped to his feet and asked urgently.

“They’re loosening the exchange rate band? Is that really true?”
“Yes, sir. As soon as the announcement came out, the Rupiah depreciated from 2.43 to 2.61 per dollar.”

Usami, still standing, slammed his palm down on the desk.

“They abandoned the fixed exchange rate before the currency speculators could attack, neutralizing the assault!”
“If the Rupiah becomes less profitable to target, the hedge funds won’t bother with Indonesia, will they?”

Usami nodded vigorously.

“Exactly. It’s become a chicken rib—all effort for minimal gain. They’ll leave it alone.”

A chicken rib, a reference to the tasteless bone of a chicken, typically meant something offering little benefit or utility, yet too wasteful to simply discard.

“A perfect analogy, sir.”

Usami’s earlier anxiety had vanished entirely. He gazed at Nakamura Shoichi with renewed vitality in his eyes.

“So the stock market will decline from the Rupiah depreciation shock, but it won’t fall below 450 to trigger the option, right?”
“Foreign investors fleeing to avoid currency losses will cause some decline, but we won’t reach 450.”
“Right. No, it absolutely must not.”

Having already suffered a billion-dollar loss from the Thai SET Index collapse, another massive loss here would be catastrophic.
Usami stubbed out his barely-smoked cigarette in the ashtray and exhaled heavily.

“Just moments ago it seemed hopeless, yet the world doesn’t demand our death.”
“Indeed. Those Eldorado bastards were so arrogant with their outrageous penalty demands—they got what they deserved.”

Looking at Nakamura Shoichi now, I could see the toll the ordeal had taken—his face noticeably gaunt.
Usami reflected on the anguish he’d endured as well.

“It seems paying the penalty and not breaking the contract actually turned into a blessing in disguise.”
“Precisely. Who could have predicted the situation would reverse so dramatically?”

The two men exchanged glances, their faces breaking into smiles.
As Usami stood and glanced down at the monitors, the expanded exchange rate band wasn’t favorable for the stock market, so the bearish trend continued.
Yet the thought that Indonesia wouldn’t experience the complete market collapse that Thailand had suffered in its fierce battle with currency speculators brought him peace of mind.
Now fully composed, Usami issued his instructions with unhurried calm.

“Once Indonesia stabilizes, even if Eldorado reaches out desperately, don’t take their calls.”
“Understood. Since we’ve suffered losses, we absolutely must not break the contract and should drag it to maturity to recover whatever we can.”
“You’re right.”

Usami settled back into his chair, murmuring to himself.

“If Indonesia can fend off currency speculators like this, other nations will follow suit. The foreign exchange crisis that’s been destabilizing Southeast Asia should finally begin to settle down.”

* * *

Four days later, Monday.
Seok-won sat on the sofa in the Daeheung Venture Capital Executive Office, conversing with John Porter, the branch manager who had flown in urgently from Japan.

“I hear the Indonesian stock market broke through 600 and is now rebounding.”

At Seok-won’s words, spoken while sitting cross-legged on the center sofa, John Porter, seated to the left, responded immediately.

“Yes. The market continued its downward trend due to foreign investors fleeing over concerns about exchange losses from the Rupiah’s depreciation. But once the Bank of Indonesia significantly expanded the exchange rate band, the market sentiment actually shifted to buying.”
“They’re buying at low prices, thinking we’ve hit bottom.”
“That appears to be the case.”

After glancing around cautiously, John Porter continued.

“Unlike other Southeast Asian nations, Indonesia has maintained a consistent trade surplus, inflation is stable at around 5%, and most importantly, interest rates are more than 10 percentage points higher than in the United States. Because of this, many believe that once the exchange rate stabilizes, the country can quickly resume strong growth.”
“Economic growth and stock market gains go hand in hand. So they’re buying cheap while prices have crashed, planning to profit later.”
“Additionally, the Wall Street Journal editorial that came out Saturday appears to have further fueled investor buying sentiment.”

Seok-won leaned back against the plush backrest, resting his chin in his hand.

“The one saying Indonesia will be the first Southeast Asian nation to repel currency speculators.”
“Exactly.”

The Wall Street Journal, along with Britain’s Financial Times, was considered one of the two pillars of global financial media, renowned for its focused coverage of economic affairs and wielding tremendous influence worldwide.
An editorial with a positive view of Indonesia from such a publication could only serve as good news for the stock market.

“With things developing this way, won’t it be difficult for hedge funds to touch the Indonesian Rupiah?”

As John Porter ventured to speak cautiously, Seok-won shook his head.

“I see it differently.”
“…?”
“In fact, hedge funds like Quantum Fund will try even harder to collapse the Indonesian Rupiah.”

Seeing the bewildered expression on John Porter’s face at this unexpected statement, Seok-won continued.

“If Indonesia avoids the hedge funds’ assault like the Wall Street Journal editorial suggests, other nations won’t hesitate to adopt identical measures.”
“With a successful precedent in place, they certainly will.”
“That’s precisely why we have no choice but to attack Indonesia, regardless of how meager the spoils might be.”

Only then did Porter, the branch manager, exhale a low exclamation of understanding.

“You’re saying the hedge funds must crush Indonesia to maintain their dominance and continue destabilizing Southeast Asia.”
“Exactly right. We’ve been leisurely extracting honey from Thailand, the Philippines, and Malaysia in rotation. Why would we want to end the party here?”
“I’d feel the same sense of loss in your position.”

Porter nodded in agreement, but his expression hardened again immediately.

“Still, considering Indonesia has preemptively loosened its exchange rate band and fortified its defenses, this won’t be an easy battle.”

Even if the hedge funds truly launched an assault on the Rupiah contrary to the Wall Street Journal’s and experts’ predictions, if the Indonesian stock market didn’t breach 450 points—the trigger condition for the option—the Eldorado Fund’s Tokyo branch would gain nothing.
As Porter expressed his concern, I responded with unhurried confidence.

“Contrary to expectations that it will hold firm, it might collapse far more easily than anticipated.”
“What do you mean by that?”

Porter’s brows furrowed in confusion.
I lifted my teacup, took a sip of coffee, set it down, and explained calmly.

“Like other Southeast Asian nations, Indonesia’s finance and economy have long been dominated and controlled by ethnic Chinese. You’re aware of that, I’m sure.”
“Of course.”
“These ethnic Chinese are more sensitive to money than anyone else. If they believe the Rupiah will depreciate and their wealth will shrink, do you think they’ll simply sit idle?”

Pointed toward an aspect he hadn’t considered, Porter felt a pang of regret internally.
But even in that moment, his mind worked quickly to identify the contradiction, and he leaned forward to counter.

“However, the regime that’s maintained long-term rule for over thirty years and ethnic Chinese capital exist in a symbiotic relationship where they watch each other’s backs. Surely they wouldn’t betray each other.”
“That’s been the case until now.”

I smiled meaningfully, a subtle curve playing at my lips.

“But stagnant water always rots.”
“…!”
“Over thirty years of long-term rule has bred corruption, and public discontent is mounting. Meanwhile, conflicts and clashes between various indigenous ethnic groups are intensifying.”

In fact, just a few months ago, an armed uprising by indigenous tribes had occurred, and the Indonesian government had conducted military suppression operations, leaving the domestic political situation in considerable turmoil.

“Above all, the president who has maintained iron-fisted rule for so long is in poor health. If there are signs that the regime might become unstable, wouldn’t anyone want to secure their assets and move them to a safe place?”

At those words, Porter swallowed hard.

“Is it truly the case that the president’s health is in jeopardy?”
“Last year, news broke that the Indonesian president was hospitalized for several days at a national hospital due to heart swelling and liver contraction, and even traveled to Germany for treatment—it caused quite a stir for a while.”
“….”
“And in April of that year, his wife, a long-time companion and political partner, suddenly passed away from a chronic illness. When someone in poor health loses a loved one like that, the physical and psychological shock is always severe.”

Porter took a moment to organize his thoughts, then spoke again.

“As you say, with internal instability, it seems natural that people would want to avoid the downpour and seek shelter first.”
“Once the Rupiah exchange rate collapses due to the exodus of Overseas Chinese capital, the stock market will crumble along with it.”
“Then the second option contract will be triggered as well.”

Seok-won smiled in response, baring his teeth.
Just then, the phone rang, and Seok-won turned to pick up the keyphone receiver mounted on the side table.
The excited voice of Manager Choi Ho-geun came through the line.

[Hedge funds are conducting massive Rupiah sell-offs in the foreign exchange market!]

Seok-won’s eyes gleamed with interest as he asked.

“How large is the sell-off volume?”
[It’s already exceeded 400 million dollars—it was 300 million, but now it’s surpassed 400 million, and the sell-off amount is rapidly increasing even as we speak.]
“Understood. Keep monitoring the situation and report immediately if there are any changes.”
[Yes, sir.]

After ending the brief call, Seok-won set down the receiver and looked at Porter, a corner of his mouth curling upward.

“It seems other hedge funds have already begun to move.”

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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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