"Mexican peso?!" Xia Tian was surprised when he heard Soros say that he was going to snipe the Mexican peso, not the British pound.

He thought he could use Wall Street's power to snipe and retaliate against the British economy this time, but he never expected that his final target would be Mexico.

"Yes, Mexico." Soros smiled and explained to him with a smile, "Mexico is the second largest economy in the world in Latin America, second only to Patsima. Last year, its GDP reached 220 billion US dollars, and its GDP per capita reached 2300 US dollars, which is a piece of authentic fat."

Xia Tian nodded.

He didn't know much about Mexico, he only knew that it was located in the south of the United States, and was rich in cactus and poisonous crystals, which was a very dangerous country.

"I know it is a piece of fat, but how do you get it? Does it have any loopholes for us to get it?" Xia Tian asked curiously.

"Mexico has been dominated by state-owned economy since World War II to previous years. The political situation is stable and the economy is developing rapidly, and it has gradually transformed from an agricultural country to an industrial country.

During the transformation process, in order to quickly realize industrialization, Mexico adopted an import substitution strategy, that is, restricting the import of foreign products and creating favorable conditions for its own industry to promote the development of its own manufacturing industry.

Because of the excessive protection of the Mexican government, the quality of domestic products is poor and the cost is high, and there is no advantage in international competition. Also, because Mexico's industrial foundation is not perfect and science and technology is backward, a large amount of imported processing equipment, raw materials and intermediate products are needed.

This led to the continuous expansion of Mexico's foreign trade deficit and the large loss of foreign exchange reserves. In order to ensure that the country's currency will not depreciate and curb domestic inflation, the Mexican government adopted a policy of "focusing on the US dollar" to maintain the exchange rate between the US dollar and the peso. This led to the high valuation of the Mexican peso, which, according to our estimate, is at least 20% higher than the actual value.

In order to encourage foreign investment, Mexico canceled currency controls and opened up financial markets last year, which gave us the opportunity." Soros smiled.

Although the Mexican peso was overvalued before, it was because the government implemented capital controls and restricted foreign capital and hot money from entering the country. Therefore, although Wall Street saw that Mexico was a piece of fat, it was impossible to eat it.

Now that Mexico has lifted capital controls and opened up financial markets, this is equivalent to opening the door of the house and allowing the group of wolves on Wall Street to break in.

Wall Street speculators who have long been salivating at it will naturally not miss this great opportunity. They are ready to chew off this piece of fat.

"So you are planning to borrow a large amount of Mexican peso and then sell it in the international market, causing the peso to depreciate. If the Mexican government wants to maintain the value of the peso, it must buy all the peso you sold back. In this way, the Mexican government's foreign exchange will be lost in large quantities, and it will not last long, the economy will collapse sooner or later, and even the country will go bankrupt.

If the valuation of the peso is given up, the price of the peso will fall, which will trigger the herd effect in the market, causing speculators to sell the peso. Then the peso may depreciate by more than 20%, or even 30%, 40%, or 50%.

At that time, you can exchange the same amount of pesos to the bank with only a small amount of US dollars. The remaining large amount of US dollars will all be your income.

Moreover, the depreciation of the peso will lead to a plunge in the Mexican stock market. The domestic economy will also be in a slump, a large number of companies will close down, people will lose their jobs, and create a wave of unemployment. Even high-quality companies may become bargain prices.

At that time, you will not only make profits in the foreign exchange market but short the stock market, but you can also plunder Mexico's resources, talents and high-quality companies afterwards." Xia Tian smiled slightly and said, "I'm right?"

After everyone heard Xia Tian's words, they were all stunned.

They hadn't told Xia Tian about the plan yet, but he didn't expect that he had already known it. Moreover, his plan was even more perfect than theirs and he also joined the acquisition of the real industry.

But in fact, most of the Presbyterians of Zion are people in the financial industry and are not very interested in the real industry. Because operating the real industry is both labor-intensive and low-efficiency, which is far less worry-free and profitable than working in the financial industry.

"Mr. Xia, how did you know our plan?" Soros asked in surprise.

This plan was conceived by their Zion Presbyterian Church for a long time, and no one else should know it except them. Because this plan is very applicable, any economy with open financial markets, rigid currency exchange rates, and false and prosperous economy can use this method to snipe. Therefore, this sniping strategy can be said to be a commercial secret worth tens of thousands of yuan and cannot be known casually.

But now summer talks and tells out his plans, which shocked and annoyed Soros, and even began to wonder if there was a spy by his side.

"The heroes have similar views, because if I want to snipe the Mexican peso, I will use this method too." Xia Tian smiled slightly.

"Mr. Xia, did you really think of this alone?" Weinberg asked in surprise.

You should know this plan. The Zion Presbyterian Church has been working together and has been conceiving for a long time. But Xia Tian immediately said this plan after hearing that they were going to snipe the Mexican peso. This... this... this is not an exaggeration to say that it is a genius.

"Of course... not." Xia Tian waved his hand and smiled, "Actually, there are many talents in our Hong Kong financial industry. Since Mr. Soros mentioned sniping currency with me last year, I have studied with our company's experts and elites, and finally formulated this plan.

Originally, this sniping strategy was considered a commercial secret and could not be told casually by others. But who told us allies? It would be better to tell you. I didn’t expect that you had thought of this method as well. This is really a different way to achieve the same goal!”

"Okay." Soros was a little skeptical when he heard him say this. But he really couldn't find the loophole, so he had to nod.

"Okay, since there is a plan, let's start implementing it. What do you need me to do?" Xia Tian asked curiously again.

"You only need to provide funds, and the specific operation will be handled by my Quantum Fund." Soros nodded.

"Okay, then how much money do you need?" Xia Tian asked with concern again.

"As far as we know, Mexico has a current foreign exchange reserve of 18.7 billion US dollars. Then we can use about 10 billion US dollars to shake Mexico's monetary system." Soros said to Xia Tian.

A country's foreign exchange reserves are equivalent to the stabilization needle of a country's economy. They cannot be completely zeroed, and they must have certain reserves. Otherwise, the country may go bankrupt at any time.

So the Mexican government will not buy all foreign exchange for pesos. They only use 10 billion US dollars, which should make the Mexican government give up and give up maintaining the pesos exchange rate. In that way, the pesos will depreciate significantly and they will get extremely high returns.
Chapter completed!