Rebirth: Super Banking System

Chapter 2487: Chapter 2325: Ling: The Asia Dollar Exchange Rate Will Rise Again This Year

This meeting.

The results are gratifying.

Firstly.

Based on the original foundation, Myanmar will increase the loan amount according to the agreed terms as per the WTO accession years, although it’s not much, only about a few billion Asia Dollars.

However.

It’s still considered a gain.

At the same time.

It also conveys a message---the Asia Dollar is going to increase circulation again. Countries don’t feel much about this, as increasing circulation isn’t scary as long as purchasing power is maintained.

In general, if a country increases its money supply significantly.

First.

Exchange rate.

More money naturally devalues it, causing fluctuations in the exchange rate market.

Second.

Inflation.

For the same reasons, both domestically and internationally, the impact is unpredictable. But if the exchange rate doesn’t fluctuate freely, and instead is regulated by Myanmar’s Central Bank.

Then.

Things become manageable.

As for the inflation issue, with money losing value, motorcycles becoming bicycles, and so on, under Myanmar’s strong control of raw material prices, changes are minimal.

If raw material prices don’t rise.

Food.

Beverages.

Usage.

Most consumer goods won’t cause the money in people’s hands to lose value. One could say this is practically unique globally.

As for Han Bei?

Forget it.

They hardly have a normal commodity economy, so with strict material control, how could inflation arise?

Therefore.

Like Myanmar, starting with controlling raw material prices to gradually impact upper-level commodity prices, indeed no other country does this.

It’s hard to imitate, even if one tries.

Just controlling raw material prices implies that a significant portion of the country’s raw material enterprises must be state-controlled or subsidized.

Clearly.

It’s very difficult to emulate.

...

Secondly.

Ling announced at the meeting: By the end of the year, the Asia Dollar will steadily appreciate by about five percent. Such an operation can be said to dazzle the eyes.

The significance of this statement.

Is anything but ordinary.

This means.

As long as you hold Asia Dollars, by the end of the year, you will have a five percent return. This doesn’t mean much for the Myanmar people, but for foreigners.

It is very important.

Because it’s higher than the interest rate from banks, and significantly so. It greatly enhances the Asia Dollar’s popularity abroad, with more people willing to hold it.

...

In Huaxia.

Upon seeing the news, many stock investors’ spirits were lifted.

They were delighted!

"Five percent? It’s going to rise again?"

"Awesome!"

"Impressive, Myanmar is handing out money again."

"Haha!"

"..."

This means that transferring money to the Myanmar Stock market now, even if doing nothing, will yield a five percent interest per year, higher than the bank’s offering.

Instantly.

With a click of the abacus.

Let’s do it!

"Quick, transfer some spare money over to earn five percent just by lying there."

"It seems the Myanmar Stock is going to rise."

"Of course."

"Another small bull market is coming."

"..."

If they can see this interest rate difference, how could others not? Once large funds flood into Myanmar from abroad, the sole destination is the financial market.

The stock market.

The bond market.

Will definitely rise.

Therefore.

Most people don’t just let their money sit; they convert it into stocks, hoping to earn a little during this small bull market.

However.

Some are hesitant.

"Is this for real? Is it reliable?"

"Of course, it’s reliable. Ling said it himself, how could it be fake? He controls the Myanmar Bank Group and said this at such an important occasion."

"So many big shots witnessed it, it definitely wasn’t spoken idly."

"Exactly."

"..."

These doubts were quickly suppressed by public opinion. If someone else had said this, they might hesitate, but who is the speaker? The President.

The founder of the Myanmar Bank Group.

His words.

In Myanmar.

Are law.

Are order.

He said it would rise by five percent by the end of the year, so it will be five percent. His stated exchange rate by the Central Bank controls the trade.

There’s no running away from it.

Then.

Many also followed to invest. Five percent is much higher than domestic deposit rates. Moreover, the stock account has the advantage of free entry and exit.

Only buying and selling stocks incur transaction costs.

In no time.

Personal capital surged crazily into the Myanmar Stock.

...

The same.

Large capital is the same. Investment institutions holding financial licenses in Myanmar are mobilizing funds. Five percent is attractive enough for them.

Ten billion dollars.

Earn five hundred million in a year.

Honestly.

It’s already a good investment return. Most crucially, it is stable, without risk. However, it is a bit frustrating that there is an upper limit to the funds they can enter.

Want to make a spread by swapping Asia Dollars.

Sure.

But there’s a limit in scale.

Indeed.

In their eyes, Myanmar’s method is primarily to establish confidence in the Asia Dollar, not to allow anyone to arbitrarily exploit hundreds of billions.

But more than that.

Forget it.

...

For a time.

All kinds of capital poured in, leading to another surge in Myanmar Stock, with everything turning green. Many people looked on enviously with jealousy and resentment.

Currently.

Huaxia and Myanmar Stock are interconnected; people from other countries wanting to invest could not open cross-border accounts and had to go through investment institutions. It’s quite cumbersome.

Therefore.

This profit.

They can’t exploit it.

Of course.

There’s a way, which is to hold Asia Dollars in cash. Hold it for a year to rise by five percent, which is also a kind of investment. Quite a few people are doing this.

...

In India.

In the north.

Roy City.

Because of its proximity to Myanmar, it directly became a semi-Asia Dollar circulation area. The whole city can use both Rupees and Asia Dollars for payments.

Moreover.

The latter is more popular.

Receiving Asia Dollars makes merchants quite happy, for the Asia Dollar’s value is stable and steadily increasing.

Its value.

Is recognized by more and more people. Because it’s located on the border, many Indians convert a significant amount of their money into Asia Dollar cash for safekeeping.

As for the US Dollar?

Forget it.

That is difficult to obtain; most families rarely see it. The Asia Dollar is much easier to acquire.

Facts show.

They made a profit.

In recent years, even though the Asia Dollar has risen by 30 percent compared to RMB, its exchange rate against the Rupees has soared over 40 percent.

Simply put: The Rupees is depreciating.

No need to think.

It is bound to exchange into foreign currency to preserve value.

Moreover.

Due to the large amount held locally, the beautiful printing, and without counterfeit notes, the Asia Dollar’s share in Roy City’s daily currency payments is increasing.

The Indian authorities naturally cannot ignore this.

However.

Let’s not forget.

Who resides in Roy City? Who are these investors? They are the big capitals and families with enormous influence in India.

Clearly.

They also want to earn the Asia Dollars.

After all.

If mandatory currency exchange is enforced at the border, then the Asia Dollar can only flow into the Reserve Bank of India. In their hands, they can only hold the continuously depreciating Rupees. How can this work?

Thus.

Under the influence of various forces.

The Indian authorities can only concede but allow only this one place to operate like this, neither imposing penalties nor promoting, staying between legal and illegal.

If the Asia Dollar circulates elsewhere, it is sure to be suppressed. After all, the national currency is considered a form of national sovereignty.

Therefore.

All national currencies are collectively known as sovereign credit currencies.

Unless the country’s monetary system collapses.

Otherwise.

Foreign currency circulation is not permitted.