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Chapter 875: Chapter 760: Solution (Please Subscribe!)
Ling still had that look of ’everyone owes me money’ on his face.
He began to speak.
"First and foremost, I must declare one thing— the stability of the Asia Dollar’s currency value reflects the economic situation of the Myanmar Economic Zone. The Asia Dollar cannot possibly devalue along with the Myanmar Kyat. I believe none of you present here have such expectations.
Secondly, the exchange between the Asia Dollar and the Myanmar Kyat was a consensus we all reached together, mainly to facilitate economic interaction and trade settlements. Indeed, it has proven to be extremely beneficial for Myanmar’s economic development.
As for all the problems that have arisen, I didn’t foresee them either. It can only be called a coincidence, and these issues are only occurring due to the special period of the Myanmar Kyat’s devaluation. Once devaluation ends, these issues will cease to exist."
Ling couldn’t possibly take the blame for this.
It was quite clear.
The policy was good.
The problem lay with the executors.
This rationale
was met with nods of agreement from those present.
Because they were all beneficiaries. If they followed Kan Qin’s words, what followed would be restrictions on the free exchange of the Myanmar Kyat and the Asia Dollar, prohibiting the inflow of new Asia Dollars into Myanmar. In the future, Myanmar would have to bear the painful throes of the Kyat’s devaluation by itself.
Lang Cai dared not voice this.
Because it meant closing off the channel of wealth preservation for the people as well.
This was a big issue. Moreover, once the exchange channels were closed, many problems would be laid outright before them, taking a lesson from Huaxia, which took over a decade to slowly acclimate society to the impact of inflation.
Myanmar expected to eliminate it in a few months.
That was simply a fool’s dream.
Lang Cai was frustrated again.
Dammit, everyone else’s arguments seemed so logical. Was he to just compromise like this? He couldn’t accept it. If there was a first time, there would be a second and a third. If they couldn’t pump the brakes, a crash was inevitable.
"I think we can appropriately limit the exchange between the Myanmar Kyat and the Asia Dollar," declared Kan Qin through gritted teeth, proposing this plan after weighing the pros and cons, believing it was better to endure short-term pain than long-term agony. Once this Pandora’s box was opened, it could never be closed.
Kan Qin’s attitude of ’easy for him to say’ and ’it’s not his interests at stake’ infuriated others.
"Deputy Leader Kan Qin, do you realize what you’re saying? If we did that, many citizens might block our doors the next day. You should be thankful for the Asia Dollar, which has helped ease the social impact of the Kyat’s significant devaluation."
"Exactly. It’s not just the citizens. Many companies have their settlements tied to the Asia Dollar. If the exchange is reduced, no company would agree. The devaluation from this loan from Huaxia hasn’t even concluded. If this happens, the losses borne by business owners—who will pay for it, you or Myanmar?"
"..."
Various department heads were chattering all at once.
It was a chorus of condemnation.
They were not afraid of Kan Qin, a deputy leader without a significant background.
Kan Qin tried several times to speak about the dangers of printing money, but how could they listen? They clearly understood the hazards of printing money, but they were more aware of the repercussions of not printing it—their wallets would no longer be full.
These words were meant not only for Kan Qin.
But also for Lang Cai.
As Lang Cai listened to their quarrels,
his heart grew colder and colder.
It wasn’t that his words had no power—rather, the ambition of capital had fully emerged. Now, Myanmar’s issues weren’t just about Ling, not just about the Asia Dollar, not just about those two disobedient brothers.
But also the budding ambitions of internal interest groups and capital.
Could he suppress them?
It seemed impossible now.
Lang Cai looked at Kan Qin, who was struggling to defend himself, and at Ling, who was still looking at the documents in his hands, contemplating the pros and cons in his mind, thinking about how to manage this crisis as well as the potential ones that might arise next.
Restricting the exchange between the Asia Dollar and the Myanmar Kyat.
This was definitely an unviable path.
If he ordered it, domestic unrest in Myanmar would be the least surprising outcome.
But if he went along with their wishes and continued to print money, Lang Cai could imagine the subsequent scenarios: the Myanmar Kyat would continue to devalue for a longer period, and the Asia Dollar would control a substantial amount of Myanmar’s assets.
It must be understood.
After the Myanmar Kyat was exchanged for the Asia Dollar,
Myanmar Bank immediately used these Myanmar Kyat to purchase assets within the Myanmar Economic Zone, or exchange them for their own enterprises to invest, mainly in land and natural resource properties.
As such, Myanmar Bank did not hold much Myanmar Kyat in cash.
As Myanmar Bank invested this money extensively within the Myanmar Economic Zone,
the government’s taxation revenue indeed increased, but it was still unable to eliminate the liquidity of the excessively issued Myanmar Kyat, meaning, the longer this depreciation cycle continued, the longer it would take for its citizens to exchange back into Myanmar Kyat.
Under these circumstances,
with the Asia Dollar going in and out,
it would control an extremely large portion of Myanmar’s assets, a portion whose value preservation capability could ensure a certain repayment capacity for the Asia Dollar. When due, it could be liquidated into Myanmar Kyat, then exchanged for the citizens in need of Myanmar Kyat.
This perfect hedging method,
Lang Cai couldn’t help but give a thumbs up.
However, when the public returned to the embrace of the Myanmar Kyat,
if Myanmar Bank wished to liquidate such vast assets, no one besides the Myanmar government could take over, potentially leading to an exchange impossibility and causing the reputation of the Asia Dollar to plummet.
Of course, it was also possible that Myanmar Bank could use these assets to secure loans for those who wanted to exchange. The plan aiming to cause substantial losses for Myanmar Bank might very well fail because Myanmar Bank used the currency of the assets’ location to overcome this difficulty. 𝒏𝒐𝙫𝙥𝙪𝙗.𝒄𝙤𝙢
Now, Lang Cai had figured out this point.
That is, the exchange between the Asia Dollar and the Myanmar Kyat was likely to result in only a small loss and certainly not harm the Asia Dollar significantly. This situation was definitely not what Lang Cai wanted to see; he wanted to witness the disappearance of the Asia Dollar.
With only the Myanmar Kyat circulating within the Myanmar Economic Zone,
Lang Cai had to think of other supplementary methods.
But what could possibly cause the collapse of the Asia Dollar?
Apart from eliminating Ling,
it would be making Myanmar Bank accrue bad debts, massive bad debts, to the point of insolvency, thereby causing the Asia Dollar to crumble.
Looking at Ling, who remained calm and composed,
Lang Cai suddenly spoke up.
"Deputy Leader Ling, since Myanmar Bank currently owns a significant amount of Myanmar Kyat and assets within the Myanmar Economic Zone, I wonder if it is possible to provide project loans for our Myanmar government’s projects." That’s right, he was targeting the Myanmar Kyat that Myanmar Bank held.
Should it come to pass,
the Myanmar Central Bank would not need to print money, becoming the creditor instead.
There’s an old saying – the debtor is the lord. Lang Cai also wanted his turn to be the lord, to hold another chip against the Asia Dollar.
He decided to wait until the Myanmar Kyat stabilized and began to flow back before finding a way to drive down the liquidation price of Myanmar Bank’s assets. Indeed, there were many ways to do this; once liquidation became insufficient, a run on the bank was inevitable.
If his own default was added to the mix,
the Asia Dollar would definitely be doomed.
By then, he could completely erase the Asia Dollar.
That meant,
when the depreciation of the Myanmar Kyat stopped,
it would also be the time the Asia Dollar disappeared.
The others, upon hearing this,
highly praised Lang Cai’s brilliance.
Mainly because the Myanmar government had never previously taken loans from domestic banks, they had not considered this, and now that Lang Cai mentioned it, it seemed indeed feasible; they could obtain money without printing, which was simply perfect.
Everyone looked at the ’moneybags’ before them with gleaming eyes.
At this moment,
Ling seemed to be shining with golden light all over.
Ling lived up to expectations,
nodding in agreement.
"It’s possible."
