Chapter 650: Dual Exchange Rate System
Chapter 650: Dual Exchange Rate System
As the cosmetics company prepared to expand, Ye Zhen went inland to select a site for a new factory, leaving Lu Jiaxin temporarily in charge of the company. With several other businesses under her name also requiring attention, she was swamped with work.
Before she knew it, November had arrived.
As usual, Lu Jiaxin did half an hour of yoga after getting off work. When she went downstairs and didn't see Nie Zhan, she called him, asking, "You're almost home, right? Alright, I'll wait for you to eat together."
Usually, Nie Zhan would call her if he wasn't coming home for dinner. But there had been an instance before where he forgot due to sudden circumstances.
Nie Zhan arrived home ten minutes later.
Seeing his somber expression, Lu Jiaxin asked, "Why the long face? Did something happen at the company?"
Nie Zhan didn't answer but took her hand and said, "Come upstairs with me. I need to talk to you about something."
Lu Jiaxin was perplexed. None of the group's companies had encountered any significant issues recently! But once upstairs, she heard some news from Nie Zhan—SL was implementing a dual exchange rate system.
"They used to have a fixed exchange rate with the Hong Kong dollar and the green dollar, just like the Hong Kong dollar. Given SL's situation, implementing a dual exchange rate system poses enormous risks," Nie Zhan explained.
Lu Jiaxin was aware that SL had faced numerous issues before its dissolution, and its leaders had made a series of erroneous decisions. However, she wasn't clear on the specifics. The only certainty was the sharp depreciation of the rupee after SL's disintegration.
As a trader himself, Nie Zhan had been trading financial products for years, but unlike Lu Jiaxin in the past, he only used his spare money for investments.
Seeing that Lu Jiaxin remained silent, Nie Zhan elaborated, "This policy allows speculators to wildly speculate on the green dollar and currencies like the British pound, and then entice people to exchange their rubles at extremely high rates for green dollars and pounds."
On the surface, it appeared to be financial liberalization, but in reality, it altered the nature of the green dollar. Such a large country, yet they failed to foresee these potentially enormous dangers.
Lu Jiaxin pondered for a moment before asking, "What makes you say that?"
"After SL fully opens up its economic market, many investment banks and commercial banks will enter the country. Various business entities will quickly capture the SL market and then employ strategies to convert state-owned assets into private assets. This is also a way to encroach upon state-owned assets," Nie Zhan replied.
Lu Jiaxin's thoughts drifted to the early days of China's reform and opening up, when many state-owned assets were converted into private assets and occupied. Alas, all crows are equally black.
"You said before that SL would disintegrate in three to five years, which I thought was absurd. But given this trend, it's entirely possible," Nie Zhan said.
"My intuition has never been wrong," Lu Jiaxin asserted.
Nie Zhan smiled and agreed, then said, "Jiaxin, I plan to buy shares in Wansheng Bank."
Lu Jiaxin immediately understood, "You want to become a shareholder of Wansheng Bank and then open a branch in SL to get a piece of the pie."
Seeing him nod, she frowned and asked, "Will your brother agree to that?"
Nie Zhan fell silent for a moment before replying, "There are many issues within Wansheng Bank, and if they're exposed, the bank could go bankrupt. If I buy shares, I'll reorganize the bank and inject a large sum of money into the SL market, which should make up for most of the losses."
Lu Jiaxin didn't want him to deal with this mess, but she also knew it wasn't easy to refuse given their close relationship. After some thought, she suggested, "We can use Wansheng Bank's name to open a branch in SL, but we'll hold 100% of the shares."
It was a common investment approach. While referred to as a 'branch', it would operate independently and bear its own profits and losses. Using the parent company's name would bring convenience and reduce potential hassles.
Nie Zhan had never thought of this approach.
Lu Jiaxin didn't want him to always be the one cleaning up after the Nie family, especially after all he had done for them. "Ah Zhan, the issues with Wansheng Bank are so severe that resolving them would require a massive amount of financial resources."
"Even if you buy shares, your percentage of ownership can't exceed Nie Jingwen's. By the time we facilitate this investment, our gains won't be significant. In business, taking on enormous risks without corresponding returns is something you might be willing to do for the sake of our brotherly bond, but I am not."
If Nie Zhan wanted to invest in Wansheng Bank, she wouldn't stand in his way, but she wouldn't contribute a single cent.
Seeing Nie Zhan deep in thought, Lu Jiaxin continued, "Also, your older brother lacks courage. Opening a branch in SL is a very risky investment, and he won't agree to it. We can open our own branch there. If our speculations are wrong, we'll bear the losses ourselves and won't have to explain to your brother and the shareholders. And if our predictions come true, we won't have to give up most of the profits."
After a moment of silence, Nie Zhan said, "Then let's do as you say. We'll use Wansheng Bank's name to open a branch in SL. I'll talk to my brother about it tomorrow."
Lu Jiaxin felt that there was no rush regarding Nie Jingwen. "Convincing Mokreich to invest in our bank would also give us a backer, right?"
Nie Zhan nodded. "I'll push forward with the bank matters. When the time is right, we'll establish a branch in SL. But before that, we can start trading rubles."
Lu Jiaxin thought for a moment. "I can gather five hundred million yuan in three days. This includes the eight hundred million dowry you gave me."
Nie Zhan didn't have that much liquidity on hand; he only had six hundred million yuan in cash. In fact, whether it was a company or an individual, no one would keep too much cash on hand. Money should be constantly circulating and generating more money. However, Lu Jiaxin was an exception, as she held a large number of stocks, and she could quickly raise a substantial amount of cash by selling them.
Nie Zhan nodded, indicating that it was enough.
After concluding their discussion, the two finally went downstairs for dinner. During their evening stroll, Nie Zhan brought up Tao Yong and Yu Meitung again. "I called him, and he admitted that he's pursuing Miss Yu."
Lu Jiaxin found herself becoming more and more curious. "So, what about Meitung? Has her attitude softened, or is she still reluctant to interact with him? If she's not agreeable, he's not allowed to persist."
Nie Zhan smiled and said, "Miss Yu had dinner with him yesterday, and they've made plans to go hiking together on Sunday. It looks like it won't be long before they become a couple."
Lu Jiaxin pondered for a moment before asking, "Is Tao Yong pursuing Meitung because he genuinely likes her, or does he have some other motive?"
Nie Zhan chuckled. "He said that when he saved Yu Meitung and saw her drunk antics, it reminded him of himself in the past. After that, he kept thinking about that night and realized he had developed feelings for her, so he took the initiative to ask her out. Jiaxin, Tao Yong takes relationships seriously. If he's pursuing Meitung now, it's definitely because he likes her and not for any other reason."
"Miss Yu has assets worth two to three hundred million yuan, while Tao Yong is already a billionaire, with more assets than her. As for resources, the Yu family has immigrated, so there's nothing left to scheme about."
Lu Jiaxin hummed in acknowledgment. "Don't bring up this matter again in the future. If those two do end up together, I'd rather hear about it from Meitung herself."
Nie Zhan nodded and smiled. "Tao Yong's family is pressing him to get married soon. If they really do start dating, they'll probably get married before us."
"That's fine, too."
Only two chapters today. I had a meeting this morning and just got home at 9 p.m., so I'm really tired now.
(End of Chapter)
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