On February 19, the National Development and Reform Commission issued the President's Law No. 3, declaring the implementation of foreign exchange control.

The Italian Central Bank established a foreign exchange management center. United Bank is the only designated foreign exchange exchange service management agency. The foreign exchange owned by other banks can be retained as the bank's reserves, or can be converted into lira according to the market price, but can only be exchanged in one direction and cannot be restored. In other words, if these banks' foreign exchange is exchanged into lira through the foreign exchange center transaction, they cannot be exchanged back. If they want to exchange again, they must apply to United Bank and undergo review by the center. Foreign bank branches must also pass the Central Bank's Foreign Exchange Management Center for foreign exchange transactions.

In addition to foreign exchange restrictions, the Foreign Exchange Management Center also regulates cross-border exchanges. All foreign exchanges only retain one channel for United Banks. Large exchanges must be reviewed - the cumbersome procedures directly hinder transactions. However, the Foreign Exchange Management Center reserves a exchange window for the people and allows them to go to United Banks to exchange for foreign exchange, each person with an identity document each year - handled with their ID card.

As soon as the news came out, the market public opinion was in a big uproar: the lira exchange rate instantly broke through 50:1, and all other banks completely rejected depositors' request to exchange foreign exchange and pushed customers to United Bank. On the one hand, they vented their dissatisfaction, and on the other hand, they were also deliberately trying to make things difficult for United Bank.

So everyone flocked to United Bank to try to exchange foreign exchange in a hurry. They thought they would be rejected, but they did not expect United Bank to issue a statement: they agreed to exchange foreign exchange and provide 24-hour service, but each person can only exchange 40,000 lira each time - equivalent to US$800. This requirement is far from enough for institutions and investors, but it is completely enough for ordinary people. Therefore, the opposition from civilians has become much smaller. A long queue appeared in front of United Bank - a scene that broke out in the United States reappeared in Italy.

American journalists who came from across the ocean saw this scene again and were stunned: As expected, wherever the president goes, the news goes.

Starting from February 20, in order to take care of the sentiment of the exchange crowd, the decline rate of the lira exchange rate has slowed down. It took 4 days from 50:1 to 55:1. Since United Bank is indeed commuting as required, everyone who can queue up has exchanged for foreign exchange, so everyone's scolding of the president is at this level.

This is not the end. On February 24, the National Development and Reform Commission convened the Banking Association to launch the management regulations again:

A deposit insurance and deposit margin system is established. The central bank is responsible for protecting the deposits of each depositor (not distinguishing between institutions and individuals), with a limit of 500,000 lira per person. If the bank goes bankrupt, the central bank will fulfill its joint guarantee liability, which will avoid the evaporation of the rights and interests of depositors in the past. The cost is that the bank must pay deposit reserves. The basic standard is 10%, and it will be implemented from April 1.

At the same time, the central bank implemented window guidance, and did not allow banks to lend to foreign individuals and institutions. Violators would be condemned and the loans that have been issued should be recovered as soon as possible or early. The central bank would conduct inspections at that time. If more than 5% of the credit is issued to the outside world, it is not allowed to change the bank and interbank lending, nor can it be borrowed from the central bank.

After the news came out, the banking community talked a lot, and the supporters were clearly divided: small and medium-sized banks generally supported the president, large banks generally opposed it. The senior officials of the Bank of Sierna, who had suffered last time, even closed the door and scolded Contini, but they were not very brave to express their dissatisfaction publicly - the black paratroopers still had their hearts scared, and everyone could only curse the president to step down early, and it would be better to become a pauper with nothing, and perhaps he could be rewarded with one lira at that time.

The motivation for small and medium-sized banks to agree is very simple. Because they have weak capital strength, they must spend more money and pay higher interest if they want to attract customers to deposit. Once the deposit insurance system is introduced, customers can rest assured. Of course, this 10% margin is worth paying, and these reserves can also be used as a reference for the central bank to support the bank when necessary, which is of great significance; it is also very simple for large banks to oppose it. They do not want to lose an additional 10% of their deposits. At the same time, foreign exchange controls limit their speculative ability, which makes them feel very unhappy.

United Bank President Francisco said worriedly: "Calais, the financial community has a lot of opinions about you. They originally supported you as president, but now..."

"Did I hinder them from getting rich?" Contini spread his hands, "I blocked their way to make money through speculation, but opened up the way to build and develop loans. This is called opening the main door and blocking evil. The US dollar bonds issued by the United Group can indeed be handed over to the central bank for currency stability, but why should I fulfill my obligation to stabilize currency so that they can make money through speculation?"

Francisco nodded: "That's right, but there are too many oppositions now, I'm afraid..."

Contini said seriously: "I don't understand their ideas. I hope to share wealth from the United Group. As the benefit of supporting me to come to power, do I lack this support from them? If I have to coax them and beg them from the beginning of the ten-year revival, how can the authority of the National Development and Reform Commission be reflected? Will anyone listen to me when I ask them to make trouble? Whoever dares to disobey, I can run him to bankrupt tomorrow! Don't doubt my determination, I will do what I say!"

Francisco was speechless. The president was about to get angry. He probably wouldn't use black paratroopers this time, but guiding a run is even more terrifying than a black paratrooper. He doesn't believe that many banks can withstand Contini's run. This is not of the same level of quantity.

"Also, do you know why we deliberately guide the exchange rate to depreciate? This is the process of building confidence..." Contini smiled. "I became the president of the National Development and Reform Commission. Many people were skeptical. I proposed the goal of catching up with the Premier League law, and more people were skeptical. I issued several orders, and almost all skeptical people could be arranged in the same division. This is not possible. I must let people see the weight of my words and let them know that my words are effective, my affairs are effective, and my methods are clever. This proves that a decade of revival can be maintained. Otherwise, if I introduce a policy, a bunch of people will make a comment. How can I carry out my work in the future?"

On March 3, Contini pointed out in an interview with ibc that the current exchange rate of lira is obviously abnormal and is underestimated because someone is conducting large-scale speculation. The government will severely punish such behavior. At the same time, he hopes that the Italian people will not believe the rumors. He rubbed Vivian who came to interview in the office, rubbing the protrusions on the other party’s chest while joking in his ears: “Tell them that lira has no basis for depreciation!”

"Hate!" Vivian replied sadly, "The Lira has no depreciation basis. If you don't come here, you will really be flattened... How long have you been out this time? Betty hasn't seen you for more than a year."

"I'll compensate you tonight!"

Compensation is effective, but this shouting is useless, so the lira will continue to depreciate.

On March 9, Contini once again shouted through the Italian People's Daily: The lira has no basis for long-term depreciation, and malicious overseas forces shorting the lira will definitely not have a good end!

However, the market treats his words as a warning, and the application for redemption of lira has continued to increase. However, the residents' lira has almost been exchanged. Now institutions and capitalists are redeeming through ordinary people, so there is a grand occasion of hiring queues. Those people can receive rewards every time they line up to exchange. Institutions and capitalists use this method of moving ant to purchase foreign exchange.

Many Italian urban poor people do not have 120,000 lira cash assets, so they help others exchange them and then obtain a price ranging from 3,000 to 5,000 lira from them.
Chapter completed!