Vol 5 Chapter 118: Bank of England lost

"Absurd and stupid, what the UK needs now is a looser monetary policy rather than another interest rate hike."
"I said a long time ago that if the safety of the pound cannot be guaranteed, withdrawing from the European Community is more suitable for the current United Kingdom."
"The market has proven that staying in the ECU is a wrong decision, but they are selectively blinded and wrong again."
"Now, continuing to buy the pound has no meaning except to provide liquidity to international speculators headed by Shen Jiannan."
"..."
In the "Daily Economic News" interview hall, Pound Brook was interviewed by reporters in front of the camera. He was like an angry cowboy attacking the cabinet's monetary policy decision.
From his initial possible results on the pound sterling to the needs of the British economy, the regulations clearly pointed out the various mistakes made by the Ministry of Finance and the Cabinet in dealing with the pound sterling issue. Brooke believes that it is meaningless for the UK to remain in the European Community. The downturn in the stock market and the economy requires a looser monetary policy. Forcibly maintaining the price of the pound is a waste of taxpayers' hard-earned money.
When Pound Brook was interviewed, Norman Lamont was also surrounded by reporters at the entrance of the Treasury Building.
"Your Excellency Lamont, the pound has fallen 29.5 percent. Does the cabinet have any plans to withdraw from the European Community?"
"Mr. Lamont, the British pound has plummeted, what countermeasures the government plans to adopt to guarantee the wealth of taxpayers."
"Mr. Lamont, has the government considered giving up the pound exchange rate."
"..."
"..."
The rush of questions made the blood vessels on Norman Lamont's forehead almost bulge. If he could, he really wanted to say, how do I know.
However, in the face of the continuous flash bullets, he can only choose to hide all the facts.
"I can't answer other questions, but the pound will never depreciate. Tomorrow, we will raise interest rates again by 3% to ensure the safety of the pound."
"The interest rate as high as 20% is unprecedented. Has the government considered causing long-term damage to the economy..."
"Mr. Lamont, there is news that the proposed increase in interest rates is a proposal from the Ministry of Finance..."
"Have the government considered that high interest rates will bring greater trauma to the securities market and the real economy..."
"..."
The muscles in the corners of Lamont's eyes were constantly twitching under continuous and forcible questioning. He bet that someone had deliberately revealed the news to the reporter.
Damn it!
Recommendation of the Ministry of Finance!
"No comment, but I'm pretty sure that the pound will never depreciate."
"Mr. Lamont, the people have the right to know the truth."
"You have the responsibility and obligation to disclose what decisions the government will make..."
"..."
With you Mapi!
In an instant, the anger that Lamont had accumulated in his heart was ignited. He angrily pushed aside the reporters, and walked into the Treasury building without looking back.
Under the obstruction of the security personnel, the noise and noise gradually faded away, but seeing the interest rate hike news on the Reuters screen, Lamont couldn't relax. With a red screen, the price of pounds sterling seemed to be closed or not affected in any way. It was almost the same as the vegetative patient lying on the bed. No medicines had any effect.
The pound is over.
Lamont was clearly aware of this, returned to the office, silently lit a cigarette, and his extremely complicated feeling made him wonder what to do.
If the pound is finished, his position can make a lot of money, but this also means that probably...
His political career is coming to an end.
After a long time, half of a cigarette was left. Lamont picked up the phone on the table and fulfilled his duties. It is necessary for him to remind the finance ministers of various countries of the plight of the pound.
"Hierro. I have to remind you that we may not be able to hold it anymore. If the pound is still the way it is before six o'clock, we may have to withdraw from the community."
Hierro Barucci, Italian Finance Minister.
His relationship with Lamont has always been very good, and even at the Bath meeting, at the suggestion of Lamont, he raised some questions to Schlesinger. Of course, Baruchi didn't know that Lamont had slapped his chest and smiled when Lira collapsed.
But these are not important. The dilemma faced by Italy and the British pound is the same. If Britain gets to this point, Italy will be very troublesome.
"I suggest that the foreign exchange market can be suspended first to leave more time, you can talk to Schlesinger during this period."
Are you stupid?
Can't it be seen that Schlesinger would like me to die.
"I want to do the same, but you know, in Great Britain, I don't have the right to terminate the continuous, global foreign exchange market."
"Okay. Take care of yourself! Everything will be fine."
"Thank you!"
"..."
Will everything be fine?
After hanging up the phone, Lamont looked at the sun gradually setting outside the window, suddenly feeling a little desolate.
Canary Wharf, Capital One Investment Management Department.
Shen Jiannan looked at the news that popped up on the screen of Reuters, and his dark eyes were full of playfulness.
In his original plan, he hoped to take advantage of this opportunity to make a fortune, and then easily pit the Wall Street guys. But looking at it now, it is no longer realistic to want to pit the Wall Street guys. The British went crazy and raised the interest rate to 20%, and called on the people to buy pounds. The Wall Street guys could take the opportunity to divest themselves of their positions.
But this has brought a whole new variable to the market.
The expected interest rate of up to three hundred basis points, but the pound market did not respond. It only shows that the market lacks buyers, and even more that the Bank of England's foreign exchange is about to run out.
Otherwise, with the operation of the British in the financial market, they will definitely take the opportunity to make a final struggle to try to raise the pound price.
But now, the Bank of England has chosen passive defense.
Picking up the internal phone on the table, Shen Jiannan dialed out quickly.
"William, how many positions do we currently hold."
"The London market holds 130,000 contracts, and the New York and Chicago markets hold 60,000 contracts."
"Continue to increase the position, I guess, the Bank of England has no money."
"..."
Hanging up, Shen Jiannan stopped Yulia Sidorov's waist like a big tail wolf.
Yulia Sidorov was almost frightened to death. She has not recovered from that crazy mental shock.
"Shen. Wait, you will let me die."
"Baby. You just said that Geman and Kamandy still have nine billion pounds, right?"
babble?
Not...
"Yes, what's the problem?"
"Now, it's time to sell all the pounds."
"......"
Pound to mark, 2.5835, -29.58%.
Robin Leigh Pemberton at the Bank of England Market Trading Department looked at the pound price comparison on the screen, and he couldn't hold back any energy as if he was out of strength.
The interest rate is expected to increase by 3%, but the market has not responded much. This can only show that the pound has not fallen to the market's expectations.
This is a very bad phenomenon.
Now that the central bank has only the last billion in funds left, it dares not intervene in the market at all, but without the central bank buying, where will the pound sink in the end?
Pemberton had no idea at all, he only hoped that the final result would not be too bad.
Suddenly, a large series of transaction data suddenly appeared on the almost stationary disk. The dense transaction data was like a stick that stirred the lake surface, making the straight-line trend chart suddenly disappear.
2.5825 Sell 6
2.5815 sold 6
2.5805 sold 6
...
2.5725 Sell 66
...
2.4675 Sell 66
...
Almost at the same time, a large number of selling orders emerged in the spot quotation system.
66666666￡Sell 2.4
66666666￡Sell 2.3
.......
Fast, too fast.
Soon Pemberton was still standing there, selling a full amount of 66.66 million pounds, and the price of the pound was hit by a series of sales to 2.3.
An unprecedented despair emerged from Pemberton's heart, filled with sorrow and inexplicable tingling, and a deep weakness.
The central bank has only the last billion in funds, and such a big sell-off can no longer be sustained.
damn it!
How many people are selling pounds?
Why are they quoting so fast?
No one can answer Pemberton's question~EbookFREE.me~ Only the pound chart pouring down like a waterfall seems to be silently mocking his ignorance.
Four p.m.
The sky is getting darker and darker, and Britain is in a pound crisis and is forced to withdraw from the currency exchange rate mechanism. Facing the irreversible decline of the pound, Mei and Lamont had to admit defeat in frustration.
Officials from the Bank of England participating in a meeting invited by the central banks of other European countries revealed that the pound will suspend its ties with the European exchange rate system.
Five p.m.
Major convened a meeting of cabinet members. In the end, everyone agreed that Britain would withdraw from the European exchange rate system and Italy would also withdraw. British and Italian currencies would float freely. The central banks of the two countries would not have to purchase their respective currencies in the market to maintain their status.
Television staff and reporters gathered outside the UK Treasury Department, waiting for the announcement of the decision.
Seven o'clock in the evening.
Lamont held a press conference in the central courtyard of the Ministry of Finance. He appeared frustrated in front of the cameras and cameras of many media. He looked like an abandoned woman and a prisoner on the execution ground.
He put his hands behind his back and smiled forcefully, but the smile on his face didn't even last for a second and was fleeting.
Although he had anticipated that this shameful moment would be announced by him, he didn't believe it until it happened that the politicians were as shameless as he thought.
"Nowadays"
"It was an extremely difficult and chaotic day. A large number of financial events happened one after another, which made the exchange rate mechanism useless...At the same time, the government believed that only by suspending its membership of the exchange rate mechanism can the highest interests of the United Kingdom be safeguarded... ..."
"......"