Chapter 13 Crazy Arbitrage
In the Soviet Union, the central bank, savings bank, construction bank and foreign trade bank each perform their duties and firmly control the country's financial lifeline. As the name suggests, the savings bank is naturally a bank that specializes in absorbing the deposits of the people and dealing with the people. The China Construction Bank is mainly a financial institution that provides investment for industrial and mining enterprises in the Soviet Union, various large public works, and some livelihood facilities. As for the central bank, it coordinates the enterprise books of all enterprises across the country. When one enterprise sells goods to another domestic enterprise, the central bank only needs to modify the amount of funds in the accounts of the two enterprises. This is the characteristic of the planned economy. In this process, the two enterprises will not see any cash. Because in the Soviet Union cash only has several fixed uses, such as paying workers' wages.
The foreign trade bank controlled by Selyosha manages all the foreign trade funds of the Soviet Union. No matter which company in the Soviet Union exports goods to foreign countries, the payee is always a foreign trade bank. The foreign trade bank will hand over the received foreign exchange to the central bank quarterly, and then modify the funds in the export enterprise's accounts at the official exchange rate. After the company makes a profit, since the money only exists in the central bank's accounts, it cannot give bonuses to workers or use them for other purposes. It can only purchase raw materials or equipment for expansion and reproduction.
Seriosha was also helpless in the long-term problem of lack of cash in enterprises. However, the Ministry of Foreign Trade and Economic Affairs can help these companies, that is, the goods exchanged by Seriosha's Mediterranean Trading Company from abroad are not handed over to the treasury, but are sold to some domestic supply and marketing companies. Of course, Seriosha can also reward some imported goods to large income-generating companies such as Volga Automobile Manufacturing Plants. In this way, a large amount of profits appeared in the books of the Mediterranean Trading Company under the Ministry of Foreign Trade and Economic Affairs. These profits were originally just numbers in the books, but in the past they could only be exchanged for bulk goods such as oil, electrolytic aluminum and other bulk items to Glencore. But now, because of Jeltsin's disruption, Seriosha is expected to turn these numbers into real cash that can be spent.
After receiving Gorbachev's approval, Seriosha quickly contacted Switzerland to provide corresponding funds for Jelitsin. Seriosha's Colombian Bank took on the loan unswervingly. About $500 million was soon arrived at the account of the Foreign Trade Bank. So far, this is the first step in Seriosha's funding plan. Seriosha then needs to exchange the money into rubles at the official price. According to the official exchange rate, the money will probably become more than 600 million rubles. This money is used by Jelitsin to pay various construction teams in the workers' new city and some supporting construction parties. It falls into the category of wages. Therefore, it can be exchanged monthly into cash, and getting this cash is Seriosha's second plan.
Seriosha's foreign trade bank has a large amount of foreign exchange reserves, and with this part of the ruble cash, it can be converted into US dollars in reverse according to the official exchange rate. That is to say, Seriosha can get back his original 500 million US dollars at any time. Because it is cash exchange, the US dollars exchanged are also cash. Due to the severe inflation in the Soviet Union, these US dollars can be exchanged for more rubles on the black market than state-owned banks. In other words, Seriosha will sell these dollars on the black market.
For more rubles, these rubles can be exchanged for more dollars at the official price. This is a snowball business with a huge profit, and the reason is that the huge exchange rate spread between private and state-owned banks. This kind of thing is no secret in the bureaucracy in Moscow. Many cadres who often go abroad know how to exchange endless foreign exchange on the black market. But officials like Seriosha who have the conditions to carry out large-scale arbitrage are unique.
This matter is familiar to Selyosha because it is somewhat similar to the previous head account behavior. But the difference is that Selyosha is a supervisor, and he can completely custodial and steal without risk. In order to obtain more funds as soon as possible, Selyosha gathered all the trustworthy hard-core subordinates within the Communist Youth League, as well as those businessmen who are brave enough to explore and think in the Youth Science and Technology Center. For example, Khodorkovsky, Berezovsky, Ji Houshenko and others acted quickly.
Seriosha handed over the business in the Leningrad region to Khodorkovsky, and Moscow was Berezovsky's territory. At the end of the quarter, Shenko was promoted to one of the leaders of the Ukrainian Youth League Committee, so his business would be spread throughout the Ukrainian region. Seriosha even brought down all of Goman, Mining and Nasja. In recent years, young people in the Youth Science and Technology Center have made a fortune, which has made many cadres who were originally keen on careers turn their attention to the business field. Seriosha's move is not illegal, and because of the existence of the Youth Science and Technology Center, the Communist Youth League has unique business conditions.
As for Jelitsin, because he didn't know much about finance, he could only rely on the residential utility bank led by Sobchak to help him manage the funds of the workers' new city. Seriosha greeted Sobchak, and Sobchak would naturally cooperate with Seriosha. Seriosha could finally implement this series of plans safely and smoothly with his disciples and his long-term business network.
After getting the US dollar, Khodorkovsky and others soon found that the money was really easy to make. Since Seriosha only wanted US dollars and was not interested in rubles, Khodorkovsky became more cautious. He found some people who planned to leave the Soviet Union and immigrate abroad, bought their jewelry, real estate, cars, etc. at a very low price, and then sold them out. This way, although it was a little troublesome, he could make more profits.
Seriosha, under the name of going to foreign automobile production lines for Volga Automobile Factory, gradually asked foreign trade banks to advance some deposits. The recipients were all affiliated companies registered by Seriosha. Because they purchased engineering equipment and other things, there was a certain time difference in delivery. After all, the automobile production line could not be produced quickly. Seriosha planned to make a funding reserve for his Japanese plan. The new production line procurement contract will be cancelled immediately after Seriosha used up the money, and Seriosha will naturally send the money back to the Soviet Union...
Chapter completed!