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Introduction to Thailand's foreign exchange
A large amount of dollars exchanged for Thai baht will lead to an increase in the price of Thai baht. For example, the original price of US dollar against Thai baht was 1: 100, but it became 1:60 or even 1:50 after buying in large quantities. In this process, Solo invested 3 billion dollars, and his 1 billion dollars may be exchanged for 85. But also led to the depreciation of the dollar and the appreciation of the Thai baht. This will cause everyone to buy Thai baht, which will lead to the continuous appreciation of Thai baht, and some people will sell dollars. At this time, Solo will buy dollars again, and he may use the changed Thai baht to buy dollars at a ratio of 55: 1. In this way, 1 100 million dollars for 8.5 billion baht can buy nearly 654.38+0.5 billion dollars. And $3 billion may become $4.5 billion in exchange! He has huge assets. If he invests 300 billion dollars, he will immediately cash out 450 billion dollars from Thailand! Moreover, it may hit the exchange rate to 1: 200, which can be said to be a serious blow to Thailand's economy, thus causing the Asian financial turmoil.