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Chapter 94: Chapter 86: The Power of New Currency_1
The logic behind this mode took him some time to figure out, as counting money and such really racked his brain.
His arbitrage model was simple.
For example, the current international exchange rate from Euros to USD is 1 to 1.3668, whereas the system’s adjusted exchange rate from RMB to USD is eight to one and from RMB to Euros is eleven to one.
He could open an account, or multiple accounts, in the international free foreign exchange market.
This would mitigate the risk of regulation.
If he had eleven million RMB, he could exchange a solid one million Euros through the system.
Then with this one million Euros, he could exchange it for 1.3668 million USD. And how to get it back into the system?
Simple.
Multiply it by eight, which gives him a total of ten million nine hundred thirty thousand...
And that’s a loss of nearly seventy thousand RMB.
Heh.
Of course, no one would do such a business. Tang Qing wasn’t a fool.
But what if he reversed the procedure?
Eleven million RMB.
He could get 1.375 million USD at the system exchange rate of eight to one, then exchange back to Euros according to the international rate of 1.3668, leaving him with one million Euros and the leftover USD.
That’s a net gain of eight thousand two hundred USD.
Calculated down, a single transaction profit is nearly 0.6 percent.
Even after deducting potential transaction costs, it would be at least seven thousand USD in profit.
In that case.
With the system’s limit of ten transactions a day, that would almost be seventy thousand USD in profit.
It doesn’t seem like a lot when you look at it this way.
But what if the transaction volume was ten million Euros at a time?
That would be at least seven hundred thousand USD coming in per day, equivalent to five million six hundred thousand RMB in profit.
And what about a month?
Damn it!!
At this point, Tang Qing suddenly sat up, his eyes full of shock.
As long as he had one hundred and ten million RMB.
In a month he could earn...
One hundred and sixty-eight million.
Damn!
Damn!
Damn!
This is insane!
Tang Qing’s heart was racing, it was almost off the charts.
This was more than just a fortune, it was practically like finding money.
Moreover, this was calculated with simple interest. If he used compound interest and reinvested the money he earned, the profit could exceed two hundred million.
Oh my god.
That’s more than two hundred percent in profit.
This is crazy!
And this is a conservative estimate.
The first point is that the exchange rates of the two currencies against the RMB will not change much over a short period of time.
Tang Qing checked, and the current international exchange rates for both currencies are just over 0.2, so there won’t be a drastic change within a month and should remain unchanged in the system for at least half a year.
Why?
Because even if the RMB falls to less than eight to the dollar, as long as it stays above seven point five, the system’s exchange rate would still be one to eight. 𝓷𝓸𝓿𝓅𝓊𝓫.𝒸ℴ𝓶
The same goes for the Euro.
As long as it is over ten point five, it will be calculated as one to eleven, which would require a significant drop that would take several months or even longer.
Moreover, he knew one thing: the USD has always been low against the Euro. 1:3.6668 is already considered very high.
Even in 2007 it was only as high as one point three seven.
So that means his profit per transaction might be a little lower in the future, but at least there will be money to be made for the next year or two.
And this is only for the exchange of Euros to USD. What if his level increases?
What kind of currency would be introduced?
If the profit from the arbitrage of USD to Euros decreases, he could just switch to another one; it wouldn’t be a big deal.
Moreover, if the newly opened currency is above and below the integer, then the profit may double several times over.
No matter what, he would be able to profit from arbitrage. Nothing could stop him from making money.
Damn!
A thought sprang to Tang Qing’s mind.
Could this system be even more awesome?
This banking system!
It really lives up to its reputation!
It seems his goal of becoming a billionaire isn’t too far off. With this pace, he should be able to amass a few hundred million before the National College Entrance Examination.
But, he plans to earn this money after the new year, first making a killing in the stock market.
By then, he could either open an anonymous account in a foreign bank or just buy one. Anyway, he had no intention of connecting this account with his personal identity.
A few days ago, he unintentionally asked about the account that was linked to his system. The system told him that the linked account could be monitored and frozen by outsiders.
But.
Without Tang Qing’s consent and the system’s operation, no one else could extract even a single cent from it.
And even if it was frozen.
Tang Qing could also spend a million RMB to have the system forcibly unfreeze his account for ten seconds, which made him feel incredible and safe.
Ten seconds.
His money would have long run off by then.
Of course.
The system only provided unfreezing services for Tang Qing’s account and not for anyone else. Tang Qing didn’t think much of it, as he had no interest in unfreezing others’ accounts.
Although the business of helping others unfreeze their accounts might be terrific.
Many banks had frozen accounts, ranging from tens of millions to billions of dollars. It would be a huge profit, but Tang Qing wasn’t interested. It was better not to draw hatred everywhere.
This was clearly a head-on collision with governments and major banks around the world.
He, who aspired to be a banker, had no interest in this. Too many enemies would make things less fun in the future.
He had other ways of making money. Why bother with this, unless he had a screw loose in his head?
He would round up 110 million after the new year, and if he ran out of money, he could mortgage loans to the bank or borrow money. He would be able to pay it off within a month at most.
Such a risk-free business wasn’t a concern. All the money left after the repayment would be his own.
Tsk, tsk.
The more Tang Qing thought about it, the more excited he got.
The more excited he got, the more he felt like countless banknotes were beckoning him. Anyway, the money was his to make.
Of course.
He had no intention of giving up the business with Liu Qian either.
Since he had set his foot in, there was no way he could easily step out.
He was aware of Liu Qian’s enthusiasm for him and knew the reason. If this line of business was cut off, he, who didn’t have any strong backing at the moment, actually did fear Liu Qian and the interest alliance behind him.
In addition, his clothing business currently still needed Liu Qian’s strong support; he couldn’t stop trading with Liu Qian no matter what.
However, he also kept to a bottom line, resolutely refusing to exchange overseas dollars for Liu Qian.
If he opened that door, he would really be asking for trouble. He didn’t want to go to jail, nor did he want to flee the country.
Subsequently, Tang Qing once again brought up his tasks:
1. Complete the loan task for the system-recommended customers this month. The specifics can be found in the task introduction. Reward: +20 experience points, 0/1 completion rate.
2. Complete a non-system recommended customer’s loan business this month, amounting to no less than 400,000. Reward: +20 experience points, 0/1 completion rate.
3. Complete all external loan quotas for the month. Reward: +20 experience points, 0/200 completion rate.
4. Complete all personal loan quotas for the month. Reward: +20 experience points, 0/40 completion rate.
5. Achievement Task One: The cumulative total of the system’s external loans reaches 3 million. Reward: +10 origin energy points, +30 experience points. Completion rate: 200/5 million.
6. Achievement Task Two: The cumulative total of the system’s external loan principal recovery reaches 3 million. Reward: +10 origin energy points, +30 experience points. Completion rate: 100/5 million
7. Achievement Task Three: The total amount of the system’s personal loans reaches 500,000. Reward: +5 origin energy points, +20 experience points. Completion rate: 30/500,000.
8. Achievement Task Four: The host’s own assets reach 5 million (excluding system’s personal loans and awards). Reward: +10 origin energy points, +50 experience points.
The tasks were the same as usual, no changes.
As long as he completed the lending and the collection tasks on time, he wasn’t concerned about leveling up for the time being.
Achievement Task Three could be completed immediately. But he thought better of it; there was no rush since it was of no use and could accumulate over time.
What he cared about now was what kind of auxiliary function the system was going to open at level three.
"System, what is the function you’ll open at level three?" Tang Qing asked in his heart. He didn’t bother to notice any changes in the interface, knowing that the system would tell him anyway.
"Level three opens up the mall system. The host can purchase items in the mall." The system answered.
"Mall?" Tang Qing exclaimed in surprise, and then his face lit up with joy. Something normal had finally come.
This was a mall!
A standard feature of a system.
Would there be some peerless martial arts techniques?
Or some miraculous elixirs?
If not, some high-tech equipment would also be nice.
Even some skills would do.
He wasn’t going to be short of money in the future; he needed a place to spend it, didn’t he?
Anyway, the system malls in the novels could buy anything and everything; they were unbelievably impressive.
Tang Qing immediately found the mall icon on the interface.
There was just this one icon, very conspicuous.
Well, the icon was a bit ugly; a bunch of impressive but unrecognizable drawings.
While complaining, Tang Qing opened the mall.
As he looked at the items in the mall, what was originally a very happy Tang Qing’s face gradually cooled down. After flipping through a few pages, his face turned pale, and he started to perspire.
Refusing to give up, Tang Qing refreshed the mall page over and over again. The whole page had only about thirty pages and could be flipped through in a couple of seconds.
Tang Qing carefully searched for other product categories. It couldn’t be that only these products were available, right?
However, reality gave him another resounding slap in the face.
No.
There were no other categories, only these goods.
Tang Qing took a deep breath, suppressing the... restlessness in his heart.
"System, get out here." Tang Qing said coldly.
"Host, what can I do for you?" the system responded.
"What’s up? Ha, big trouble. You tell me, what’s with these goods? Are you messing with me?" Although it was a silent murmuring in his heart, his anger was indeed expressible.
"Please describe the problem correctly, host." the system responded.
"Well, you... Fine, tell me, what exactly are the goods being sold in the mall right now? Is there a mistake?" Tang Qing asked, annoyed.
"Host, the system has not detected any errors. These goods are indeed the product catalog of level three’s mall." the system replied.
"Then you freaking tell me, why do they all seem like weapons and equipment? Are you expecting me to go to war?" If Tang Qing were speaking, he would definitely have shouted that out.
PS: Seeking for recommendations, dear readers.
