Shortly after Li Jianhui and others returned to Xiangjiang, they received an invitation from the Finance Department to attend the Xiangjiang Financial Conference held by Finance Department Wilms at 10 am the next morning.

Originally, Li Jianhui, Li Guobao and others only thought that this meeting was to deal with the incident of many citizens and institutions exchanging foreign exchange in recent days, but they did not expect that the topic was beyond expectations.

Since the pound achieved a floating exchange rate in 1972, the Hong Kong dollar has been decoupled from the pound and no longer implemented a fixed exchange rate with the pound. In recent years, the two major banknote issuing banks, HSBC and Standard Chartered paid foreign exchange funds to the Monetary Authority for foreign exchange funds such as pounds and US dollars, and obtained

A certificate of liability, and Hong Kong dollars will be issued according to the exchange rate.

Although the Hong Kong dollar declined for a period of time due to economic factors in the mid-1970s, with the rise of Xinjian Group in recent years, the exchange rate between the Hong Kong dollar and the US dollar has basically remained at around 5.1. Even if there were any foreign exchange runs, there was still no major fluctuation.

There is no need to modify the current policy.

However, today, Wilms mentioned that the Hong Kong dollar and the pound were re-implemented in fixed exchange rates, so the financial elites present were naturally unwilling to accept it.

As for the development of the British economy, the exchange rates between the pound and the Hong Kong dollar have been falling in recent years. Once the Hong Kong dollar and the pound are subject to a fixed exchange rate, the Hong Kong economy will inevitably suffer significant losses.

As the Chinese banner of the Hong Kong finance industry, Li Guobao took the lead in speaking: "Mr. Wilms, what is the situation in the pound at present and what is the situation in the Hong Kong dollar? I believe you know very well. Do you think we are all fools?

It is impossible to implement a fixed exchange rate between the Hong Kong dollar and the British pound. We can only accept that the pound is a type of foreign exchange payment for our Hong Kong dollar in Hong Kong, and maintain a floating exchange rate. We will never let the Hong Kong dollar be pegged only to the pound."

Subsequently, Feng Jingyao, Feng Jingxi, Qiu Degen and others spoke one after another, all of which opposed Wilms' proposal.

If Wilms dares to mention it, there will naturally be no shortage of supporters. As one of the Hong Kong dollar issuing banks, HSBC senior member Shen Bi said:

"Everyone is aware of our Hong Kong dollar issuance system. Before issuing Hong Kong dollars, we need to pay fixed foreign exchange to the foreign exchange fund and obtain a liability certificate.

At present, we are implementing a floating exchange rate. The appreciation of our Hong Kong dollar means that foreign exchange depreciation, which leads to the fact that we pay foreign exchange value to offset the currency we issue. If this problem is not solved as soon as possible, the holes in the future will become increasingly common in the future.

The bigger the.

Only by implementing a fixed exchange rate can our Hong Kong dollar issue not have any problems, and our Hong Kong dollar issuance system can continue to be maintained."

"Shen Bi, it's almost the same to fool people who don't know. Our Hong Kong dollar exchange rate is basically based on the foreign exchange paid by your two major banks into the foreign exchange fund. If the currency in the foreign exchange fund falls, our Hong Kong dollar will also fall.

I also think this currency issuance system is inappropriate. I think our Hong Kong dollar should be issued in gold reserves to get rid of the kidnap of our Hong Kong dollar by currencies such as pounds, US dollars, Japanese yen, and at the same time avoiding the excessive issuance of Hong Kong dollars to cause inflation, so that we can make it more

We will protect the interests of Xiangjiang."

Wilms received local instructions and naturally would not agree with Li Jianhui's opinion. Moreover, the gold standard system has been abandoned by all parties, so he naturally did not want to build a gold standard system in the Hong Kong dollar.

Pixar, head of Standard Chartered Bank Hong Kong, retorted: "Over this century, more and more countries have proved that the gold standard system is simply not conducive to their own economic development.

Moreover, the price of gold fluctuates quite greatly. If the Hong Kong dollar is linked to gold, it will be detrimental to the stability of the Hong Kong economy at all.

The British pound is currently the second largest currency in the world and the highest equal value. The Hong Kong dollar is pegged to it, which will inevitably enhance the international purchasing power of the Hong Kong dollar."

Representatives of Chinese banks obviously do not agree with Pixar's view. The Hong Kong dollar exchange rate is stable and the economic development is pretty good. There is no need to depreciate or appreciate the Hong Kong dollar.

Once a fixed exchange rate is implemented with the pound, if it is set to high, the appreciation of the Hong Kong dollar will be detrimental to the export economy of Hong Kong. If the current exchange rate is maintained, the Hong Kong economy will suffer heavy losses as the pound continues to decline.

What Chen Bi mentioned cannot be solved without solving it. If you continue to maintain the current system of floating exchange rate payment and foreign exchange issuance, there may be big problems in the future.

The pound is not tied to, and Li Jianhui is also willing to see it pegged to the US dollar just like in his previous life.

After thinking for a while, he said: "Our Hong Kong dollar cannot be linked to a single currency. In order to solve some of the disadvantages of the current issuance system, we should adopt a system of parallel payment of gold and foreign exchange.

If HSBC and Standard Chartered are unwilling to take the risks in this, our Xinjian Bank is willing to bear the issuance of Hong Kong dollars and maintain the financial stability of Xiangjiang and the interests of Xiangjiang citizens."

Not to mention that Chen Bi and Pixar are unwilling to Xinjian Bank to intervene in the Hong Kong dollar issuance, even Wilms is unwilling to see it.

The current issuance system is exaggerated, but there is actually no big problem at all. The depreciation of foreign exchange in Hong Kong dollars follows. Whether it is Standard Chartered or HSBC, there is no need to bear any losses.

Today, they mainly hope to push the Hong Kong dollar to the pound to bring it back to the situation ten years ago.

This is also because of Li Jianhui's butterfly effect, which makes Britain more ambitious than in his previous life, hoping that the pound can return to its peak.

This time, Britain is not just trying to peg the Hong Kong dollar to the pound, but the other party is also contacting the Commonwealth countries, hoping to build a fixed exchange rate system between the currencies and the pounds in various places.

If it really doesn't work, I also hope that the import and export trade between the Commonwealth regions can be settled in pounds, enhancing the position of pounds in global currencies.

In order to achieve the goal as much as possible and kidnap the Hong Kong dollar on the chariot of the pound, Wilms said: "At present, the foreign exchange fund is mainly dominated by the US dollar, and the US economy has also been sluggish in recent years, and it has maintained too much US dollar foreign exchange. It is not conducive to the stability of the Hong Kong dollar and even the Hong Kong economy.

With the rapid development of our Xiangjiang economy over the years and as our Xiangjiang economic status continues to improve in the world, we must make new changes to meet the needs of the Xiangjiang economy.

…”

Although Wilms talked about the benefits of pegging the pound and also talked about the adverse impact of excessive US dollar foreign exchange on Hong Kong, none of them could change the will of Li Jianhui and others.

Because this time, Li Jianhui and others specifically asked the Financial Administration to adjust foreign exchange currencies in a planned manner to avoid excessive depreciation of a certain currency causing huge losses to the citizens of Xiangjiang.

At the same time, the HKMA is required to increase fixed assets to serve as a buffer, especially to increase gold reserves, so as to balance the impact of foreign exchange currency fluctuations.
Chapter completed!