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Chapter 1040: Chapter 912: Conditions for Credit Limit Increase (Subscribe please!)
It’s better to disperse than to block.
This was a new tactic that Tang Qing had learned.
Instead of intimidating those restless folks from daring to rob his bank with force, it was better to give them something to fight over internally. If it came down to direct force or coercion, it would be different in another capital city.
It would be rather conspicuous.
Like right now.
With a "legitimate" reason, they would start fighting each other.
Once these underworld forces began to fight,
it wasn’t up to them to stop whenever they wished—it was Tang Qing who had the final say. Fighters would continuously provoke both sides, intensifying their conflicts and hatred, wearing down their sharpness until in the end, they might even forget why they had started fighting...
This was the method Tang Qing thought most effective.
Far better than direct threats.
Even if these folks in Maputo managed to hold on to their "territories," it was just about finding them an "opponent," diverting the opponent’s external "needs" entirely into endless internal consumption.
This strategy.
Tsk, tsk.
Consider it a service to the people.
After all, none of these guys were good people.
Not a single one had clean hands.
If they died, they died.
...
The next day.
Maputo.
Myanmar Bank.
More and more Chinese people got the message.
A good number traveled from the surrounding areas to open accounts first, saying that although most local Chinese in Maputo had not transferred their money to domestic accounts, nearly all the Chinese from other regions had done so.
Because there were no Myanmar Bank branches in their areas yet.
They transferred their money back home.
So their family members could handle the payments for goods.
They were very eager for branches to quickly reach other cities.
However, in the short term, it looked difficult because Myanmar Bank officials said that within a month, there would be many branches in Maputo, but in other cities, only a few big cities would have them, and other places wouldn’t see any this year.
After the disappointment,
came understanding.
A new bank.
Indeed needs time to slowly take root; taking too big a step too soon might lead to trouble.
...
July 19th.
The Myanmar Bank delegation arrived in Maputo again.
Locke and a host of Mozambican dignitaries personally went to the airport to welcome them. When dealing with sponsors, no amount of pomp was too much, especially since they had requests to make. Naturally, they had to show some humility.
"Distinguished guests from afar, I welcome you on behalf of the twenty million people of Mozambique."
"It’s a pleasure to see you again,"
The expression of the fighters showed little change,
just maintaining politeness.
Locke was accustomed to their attitude and brought them to the Presidential Palace.
Last time,
they agreed on the terms of cooperation.
This meeting was about implementation.
"The business development of Myanmar Bank has been going well these past few days, with the number of account openings already exceeding ten thousand. I believe it won’t be long before your bank will have over a hundred thousand users in our country..." Locke said excitedly.
A hundred thousand.
In Mozambique, that’s really a big number, mainly because people here don’t have much of a savings habit, and the vast majority don’t even have a bank card; everything is done with cash transactions.
In Locke’s view,
Such a scale.
Myanmar Bank must be operating at a loss.
But as a bank, they weren’t exactly short on cash.
The fighters shook their heads: "President Locke, this number shows just how poor the payment and savings habits are in your country, far exceeding our expectations. Banking business here is tough."
Locke wanted to brag,
but not about such an insignificant number,
a hundred thousand was just annoying, so of course, he had to counter.
Myanmar Bank was now seeing a far higher number of new users every week, thanks to the increasing trade with Huaxia and nearby countries. People from other regions could also open accounts at Myanmar Bank.
To protect against the inflation pressures of the devaluation of the Myanmar Kyat,
this scale of account openings was still growing.
"This... you’re just starting out, but there’s also a benefit to it: the consumer market is lively, commerce is thriving, merchants have an easier time, and banking is better business, isn’t it?" Locke quickly smoothed things over.
"Naturally, we too are gambling, taking a rather optimistic view on the future economy of Mozambique," said the fighter. Business negotiations didn’t need to be as precise in language as state visits.
Nations conduct business amid careful wordplay,
While commerce is laid straightforwardly on the table.
"Thank you, we will do everything possible..." Locke stopped mid-sentence, suddenly realizing that damn, he had been played, and in just a few sentences was put on the defensive.
He glanced around, and everyone else still hadn’t caught on.
Pigs!
Locke quickly corrected himself: "Ahem... we also have confidence."
The fighter got straight to the point, "That’s good, President Locke, according to the agreement we reached last time, after the Myanmar Bank is successfully established and a payment of one point three billion dollars has been made.
Our Myanmar Bank can begin to provide guarantee payments for Mozambique’s government bidding projects, with an initial annual coverage amount of three billion Asia Dollars, excluding the special loan of one point three billion dollars, your country still has a guarantee payment limit of nineteen point five billion Asia Dollars."
Hearing about this much money.
Everyone present started to get excited.
Although it couldn’t be withdrawn and spent freely, nor could it be used to make arbitrary purchases in foreign countries, and could only be used for specific government projects, it still promised to bring tremendous benefits, even though it felt somewhat meager.
Less than three hundred million dollars.
"How can we increase this limit?" Locke asked urgently.
The fighter shook his head: "The debt situation in your country is really too bad; without significant improvement in your debt repayment capabilities, we really can’t provide a larger limit.
After all, what we are paying out is actual cash from our bank, and even if we take your country’s minerals, they can’t be liquidated in a short time and gradually become sunken assets for the bank.
This is extremely unfavorable for us."
"..."
Locke knew the other party was making sense.
Others were helping him with payments, all settled in foreign cash, that’s the hard-earned ’blood and sweat money’ of others; thinking he could just cash in minerals was a bit too optimistic.
At that moment.
The fighter suddenly spoke up.
"However, it’s not without a solution, it just depends on whether you agree or not."
"What solution?"
Locke was too tired to worry about being ’maneuvered’ at this point.
The fighter explained: "For the part of the increased limit, you must use it to purchase Asia Dollar goods. If you want to buy RMB or dollar services, we need to pay out actual foreign currency.
If you purchase our Asia Dollar goods, we have more leeway, which is beneficial for both parties."
Someone might ask.
Even if Mozambique purchases Asia Dollar goods, tracing back to the source, aren’t raw materials still needed to be purchased with foreign currency? Isn’t that similar to paying on behalf? But don’t forget the value-added part.
A piece of raw material worth one dollar.
With the addition of technology.
The final product is processed into something with a factory price of ten dollars, in which, only one dollar of foreign currency was spent; the other nine dollars were entirely created within the Myanmar Economic Zone, and this wealth wouldn’t flow out.
Looking at the result.
The purchase of goods from the Myanmar Economic Zone by Mozambique is fundamentally different than purchasing products and services from other countries, and most importantly, now raw materials can also be paid for with Asia Dollars.
It’s definitely profitable.
As long as production starts, it’s money."
"So, what do you have in the Myanmar Economic Zone?"
This was Locke’s biggest question.
"High-quality small commodities, mechanical equipment, a lot, I will give you a list later. As long as the purchase is from the list, it won’t consume the previous thirty billion limit, and we can open a larger limit for you," the fighter said.
Locke nodded, seeing that things had taken another major turn, "Then we will consider it, wait to see the list before discussing this further. For now, we have a request, that is, whether you can continue to provide us with dollar loans."
The fighter countered, "President Locke, it seems that your country currently does not have any dollar-denominated treasury bonds due. As for the treasury bonds issued within your own country, can’t you just print money for that?"
Treasury bonds, one kind is issued abroad to obtain foreign currency, the other is issued to the citizens of one’s own country.
The former must be exchanged for someone else’s money.
The latter can be repaid by printing money, not a big deal, although this will lead to inflation, but it’s better than defaulting. If they don’t honor the debt when it comes due, the domestic populace is sure to cause trouble.
It wasn’t surprising to Locke that the other side understood them so well; he explained: "There are currently no dollar debts, but our foreign exchange reserves have bottomed out, and we need dollars for regular trading."
Their main national debt was in dollars and yen, which could be repaid either with dollars or yen, while the Myanmar Bank had very few yen, and it was definitely not possible to borrow that.
"I can’t help you with that. Your country’s annual trade deficit is around twenty billion dollars, of which a small part is currency from other African countries, but dollars and yen make up the heaviest proportions.
To fill such a large dollar gap for you would affect our normal trade settlements," the fighter flatly refused.
"...So there’s no way out?" asked Locke, disappointed.
"Actually, the solution lies in the previous issue," the fighter introduced another twist.
"Previous?" Locke didn’t understand.
The fighter said, "Yes, you’re short of dollars and yen, but you also earn some. As long as you control your inflows and outflows, and you earn more than you spend, wouldn’t you be able to slowly turn the situation around?"
"Earn more than we spend?" Locke still didn’t get it.
That logic.
Was indeed not easy to wrap one’s head around quickly.
The fighter explained, "We’ve offered you a larger limit for Asia Dollar commodity trade. If Mozambique can reduce its dependency on dollar and yen goods for imports and increase the proportion of purchases from us.
Wouldn’t that gradually resolve the dilemma?"
"It seems... that makes sense," Locke realized suddenly. The logic was sound but... could the products from the Myanmar Economic Zone suit the Mozambican market?
As if seeing through his thoughts, the fighter continued, "You could control imports of the same quality and price range of goods a bit, and if all goes well, you could achieve significant results this year."
"..."
Locke had a headache.
Wanting to eat meat.
Was indeed not that simple.
This matter still needed long-term planning.
