Chapter 828 Hong Kong Dollar Crisis! Yang Ming's Solution!!

The Empire State headquarters has officially moved from the Federal Building to the Empire State Building.

These days, the news in Hong Kong has always been related to this.

besides.

There is another very serious thing.

The Hong Kong dollar crisis in Hong Kong is getting more and more serious.

In fact, the Hong Kong dollar crisis in Hong Kong did not just occur now, but has started to depreciate since the 1980s.

Due to concerns about the future of Hong Kong, a large amount of money left Hong Kong. In addition, since 1977, due to the excessive growth of currency and credit, the trade deficit has expanded, inflation has continued, the Hong Kong dollar exchange rate has continued to decline, and there has been a decline in speculative activities. Some people are rushing to buy goods, which has further worsened the depreciation of the Hong Kong dollar.

The exchange rate of the Hong Kong dollar was 5.13 Hong Kong dollars per US dollar in 1981, and has been declining since then. In September 1983, the Hong Kong dollar exchange rate hit a new low, falling to a low of 9.60 Hong Kong dollars per US dollar.

In other words, the Hong Kong dollar has depreciated severely, which has greatly affected Hong Kong's finance, economy, etc.

On the afternoon of September 25, 1983.

On the sixth day after Yang Ming's inauguration ceremony and housewarming ceremony at the Empire State Building, Yang Ming finished talking to the last guest and sent the guest out in person.

Lin Dezhong received a call from the Governor's Mansion. Governor Mailihao wanted to meet Yang Ming at the Governor's Mansion.

When Yang Ming learned the news, he had already guessed that it must be related to the outbreak of the Hong Kong dollar crisis.

Yang Ming had already known about the emergence of the Hong Kong dollar crisis, and he was not seeking profit from it.

However, Yang Ming really does not want the Hong Kong dollar to continue to depreciate, which will affect the economic development of the entire Hong Kong. Now, Yang Ming has monopolized all walks of life in Hong Kong, affecting the economy of Hong Kong. In fact, it affects the development of the Imperial Group.

While Lin Dezhong was getting ready, Yang Ming took a car to the Governor's Mansion.

Just got off the car.

Mr. and Mrs. Malihao had already come out to greet them.

"Hello Sir Yang."

Mailihao felt that Xiangjiang was increasingly inseparable from Sir Yang at this time.

Or in every aspect.

The most important thing is that the Empire Group's current industries have entered all walks of life.

In other words, every move Yang Ming makes is too important.

Yang Ming and Mailihao and his wife went to the Governor's Mansion.

In the study room.

Yang Ming did not see the white-faced Youde.

Jude has already gone to Yanjing.

Basically, it was Jude who went to Yanjing on behalf of the Governor-General's Office.

Historically, Jude probably died of a heart attack from running too much.

"Sir Yang, the Hong Kong dollar has depreciated seriously now. We have invested a lot of money, but there is still no way to stabilize the Hong Kong dollar."

Of course Yang Ming knew the reason.

Historically, the severe Hong Kong dollar crisis was closely related to the flight of a large number of British and even Chinese capital, who took away large amounts of funds.

Now Yang Ming is planning ahead and has controlled a lot of Chinese capital through the stock market in advance.

The most important British assets in Xiangjiang, except Taikoo, are basically controlled by him.

Under such circumstances, the Hong Kong dollar still depreciated so severely.

Nature is not formed in a short time, but over a long period of time. Moreover, the most critical thing is that investors have no confidence in Xiangjiang’s future.

"Sir Yang, I wonder if you have a way to solve this problem?"

Mailihao looked at Yang Ming and said.

This series of crisis issues have begun to affect Mailihao's status in the Hong Kong Government House.

Historically, Jude is now on the throne.

Because of Yang Ming, Mailihao was now in office, and he began to feel confused and scared.

Mai Lihao never expected that since last year, there have been so many problems in Xiangjiang, and he even wanted to retire early and return to London.

At this time, he felt that the best way to help solve this problem was Sir Yang's intervention.

"have."

"Sir Yang, please speak quickly."

"Mr. Governor, we must immediately adopt a linked exchange rate system, and the Hong Kong dollar will be pegged to the U.S. dollar, with the exchange rate set at 7.8 Hong Kong dollars to 1 U.S. dollar. In other words, the Hong Kong dollar and the U.S. dollar will be completely linked to each other. The Hong Kong dollar will only depreciate when the U.S. dollar depreciates."

Now in the world, the US dollar is the most stable.

At this point, the pound is definitely not good.

In the past, the Hong Kong dollar was pegged to the pound. With the decline of the Big Y empire, the pound has become unstable. There will definitely be problems with the peg between the Hong Kong dollar and the pound.

As for gold.

Although gold is still very stable, gold has experienced skyrocketing and falling prices in recent years, but it is still unstable. Especially the Chinese-owned bank crisis that broke out last year was related to Xie Liyuan's gold certificates and must not be linked to gold.

In this case, it is most appropriate to adopt a linked exchange rate system to peg the Hong Kong dollar to the US dollar.

Yang Ming is not a financial expert, but he knows about the economy of Xiangjiang in his previous life.

The linked exchange rate system is a fixed exchange rate system, that is, the exchange rate between the local currency and a specific foreign currency is fixed, and the currency issuance is linked to the amount of foreign exchange storage in strict accordance with the established exchange ratio.

If the linked currency is the U.S. dollar, it can also be called a "dollarization system."

According to the provisions of the currency board system, both the flow and stock of the monetary base must be fully supported by foreign exchange reserves.

In other words, any changes in the monetary base must be consistent with corresponding changes in foreign exchange reserves.

Linked exchange rate systems are often associated with stability.

Later, many developing countries adopted the linked exchange rate system to create a stable environment for foreign investment.

Under the linked exchange rate system, investors will always know the value of his/her investment project without having to worry about daily exchange rate fluctuations.

In addition, the linked exchange rate system is more likely to help reduce inflation due to greater confidence in the stability of the currency.

In the late 19th century, Country Y proposed and established a linked exchange rate system for its colonies.

As a colony of Country Y, Hong Kong adopted this exchange rate system, linked to the British pound, abolished in 1972, and re-activated in 1983, linked to the US dollar, 7.8 Hong Kong dollars to 1 US dollar.

It is obvious that Yang Ming's solution is the best solution now.

After listening to Mai Lihao, he already understood.

"Sir Yang, thank you for your suggestion."

Yang Ming knew that even if he did not propose it, the Governor's Office would still follow this method.

It's just that it may be delayed.

"Mr. Governor, Hong Kong is an international free trade port and the world's third largest financial center. This is the best solution now."

Yang Ming originally wanted to propose that the Overseas Trust Bank be the bank that issues banknotes in Hong Kong like the Bank of China and the Bank of Hong Kong. Yang Ming knew that it was not the time yet.

After the two sides finished talking.

Mai Lihao believed that Sir Yang's proposal should solve the current Hong Kong dollar crisis.

Yang Ming came out of the study.

Mai Lihao and his wife personally sent Yang Ming out.

When seeing Yang Ming get into the Rolls-Royce and leave, Mai Lihao knew that Sir Yang was becoming more and more indispensable in all aspects of Hong Kong.

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