Suppose the exchange rate was 1: 25 at the beginning, Soros borrowed a lot of Thai baht from banks in Thailand and then sold it in the foreign exchange market to buy dollars. Because Soros sold a lot of Thai baht in batches, it is easy to cause panic in the foreign exchange market and make everyone think that there is something wrong with the Thai baht and there is a danger of collapse.
Therefore, the selling volume of Thai baht was amplified by this herd effect, so the exchange rate of Thai baht plummeted. Assuming that it falls by 1: 50 at this time, Soros can buy back the borrowed Thai baht with a few dollars, and the difference in the middle is the income. At the same time, Soros can bet on the forward market that the Thai baht will depreciate sharply, and Soros can make a big profit in this market.
It should be noted that although Thailand has a fixed exchange rate, because Soros and others sold Thai baht for dollars on a large scale, and Thailand's dollar reserves were very small, the Bank of Thailand finally gave up the fixed exchange rate when its foreign exchange reserves were exhausted, and the exchange rate fell sharply after floating freely.
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Soros once commented on himself: He is not a businessman, but invests in other people's businesses, so he is a veritable critic. To some extent, I can be called the highest-paid critic in the world.
This is Soros, and people can never predict what his next move will be, whether to hold high the banner of peace or another painful earthquake that shocked the world.
People often accuse Soros of hypocrisy and always advocate left-wing ideas and even socialist ideas. For many years, he has been one of the main critics of the American regime. But the actual action is based on their own economic interests, take controversial measures and use inside information to make themselves a billionaire. The modus operandi is to win the favor of left-wing politicians and then serve themselves.
Baidu Encyclopedia-Soros