Chapter 740: Profligate Woman
Suppose someone exchanges one hundred million international currency for ten billion star coins, and then, turns around and exchanges the ten billion star coins back into international currency. Not counting the handling fee, labor costs, etc., this transaction wouldn’t earn much, only creating unnecessary hassle.
This person would need to earn more star coins in order to get more international currency, thus hollowing out Star Country’s foreign exchange reserve and depreciating the star coin. This is the basic theory of currency blockade. Of course, futures and other financial derivatives are also involved, but Gu Fan didn’t give these much thought.
To make more star coins in the shortest time, the Stock market of Star Country is undoubtedly the best place. International speculators capitalize on the market, sending stock prices rocketing up and earning a fortune in the process. So, ten billion star coins making a round in the stock market could turn into twenty billion, and this would exchange for more international currency.
Star Country, in order to attract foreign capital, doesn’t regulate its foreign exchange and the stock market is openly accessible to foreigners; this is the perfect opportunity for international market manipulators. The so-called financial freedom allows these international financiers to come and go as they please, giving them the chance to plunder wealth at will.
There’s another problem. Star Country has overestimated its economic situation and printed too many star coins. When these excess star coins enter the market, it leads to inflation, prompting much of these star coins to flow into the stock market.
It’s this situation that international financiers seized upon, leading them to start buying up star coins and then entering Star Country’s stock market.
On this particular day, Gu Fan, who isn’t an international financier, was thinking and realizing there were many things he didn’t understand. He doubted that he could fully guess the maneuvers of these international financiers.
Suddenly, the computer screen showed that Star Country’s stock market had started to fall...and drastically so. Gu Fan was taken aback, wondering if the international financiers had started their move.
At this time, Boss Ding also ran out of his office, exclaiming loudly, "Gu Fan, take a look! Something’s happening."