Chapter 687 The Euro collapsed


    ?Nowadays, Chang Haonan''s statement, even if it is only verbal, is quite convincing to the Science and Technology Commission.


    So, after he said "wait half a month and see again", the other people basically accepted this statement naturally.


    However, in any case, Chang Haonan and Ding Gaoheng initially made the decision to "secretly help behind the scenes". Their original intention was to take advantage of the opportunity to kill the American spirit. It would be best if they could achieve some more iconic results and let the whole world know. The world steps out a little from each other''s shadow.


    This F117, no matter how it was damaged in the battle, must be of great use for this purpose.


    So, although the actual situation may be somewhat different from the original idea, the interest of several people in the conference room quickly returned to its original state.


    ?Perhaps for this reason, today’s briefing did not end hastily, but entered the next stage.


    “Dear leaders, since the beginning of Operation Allied Force, there is some information other than military intelligence that deserves more attention.”


    While speaking, the new secretary who replaced Lan Xinzhi put a new piece of document paper on the projector, and a chart was instantly displayed on the big screen.


    “The exchange rate of the euro against the U.S. dollar has fallen from 1:1.1800 to 1:1.0640 in the past three days, a drop of as much as 9.83%, and the decline has not yet stopped.”


    “The People’s Bank of China’s Foreign Exchange Administration estimates that if the EU cannot inject confidence into the market through some strong means, the euro may further fall below 1:1 against the US dollar in half a month.”


    Looking at the shocking decline rate of the curve on the table, even those in the conference room who are not well-versed in finance can realize that the EU is likely to suffer a serious blow this time.


    As one of Europe''s major trading partners, China will obviously also be indirectly affected.


    “It seems that Europeans will inevitably lose a piece of meat from this round of events…”


    Ding Gaoheng sighed:


    "Furthermore, since last year, the contracts we signed with several European countries have stated that transactions can be conducted through the euro. But now that the exchange rate of the euro is fluctuating like this, it is not good news for us to build euro foreign exchange reserves. …”


    ??If we only look at it from the perspective of a single buyer and seller, then the depreciation of the euro will be beneficial to China’s imports but not conducive to China’s exports.


    ??However, trade between countries, or even just the trade between enterprises affiliated to the Science and Technology Commission and Europe, is extremely complicated and cannot be summarized clearly in a simple sentence or two.


    But in general, for a new currency like the euro, and a new currency with symbolic significance for European integration, it is best for the exchange rate to remain relatively stable.


    ? Even a 10% increase in three days may not be a good thing, let alone a decrease now...


    “We at Torch Group also encountered this problem…”


    Chang Haonan said in a helpless tone:


    "Recently, it is the peak period for the release of the official version of TORCH Multiphysics. Many of the orders signed before were paid in euros. There are also two Sugon 2000T and numerical calculation business sold, which may cost tens of millions. Payments in euros have now dropped by 10%, and will obviously continue to fall, which is also a big blow to our business..."


    The other people were not surprised by the ability of the Torch Group to attract money.


    After all, it is a monopoly business to a certain extent.


    “But from our standpoint, we still have to let the euro hold on, even if there is some damage to our interests in the short term.”


    Huai Guomo, who has been responsible for foreign project cooperation for a long time, knows relatively well about these things:


    “The current U.S. dollar is too strong in the international market. Although the Japanese yen also occupies a certain share of settlement, it cannot be regarded as a completely independent currency. The ruble has almost become waste paper, and the RMB has no voice at all.”


    “So if we want to break the monopoly of the US dollar, we can only support the euro to fight against them for the time being.”


    “Then we still have to bite the bullet and continue to use it?”


    ?Lu Xiujun, Director of the Department of International Cooperation, frowned and felt a little headache.


    In fact, at present, China''s trade with Europe is generally in a relatively balanced state, but when it comes to the business of the Commission of Science, Technology and Industry for National Defense, exports are still far greater than imports. Nowadays, the plummeting euro will naturally cause huge losses.


    Ding Gaoheng waved his hand to signal the other party to calm down:


    “The specific policy for the euro has not been decided yet. I will be notified of the second emergency response meeting the day after tomorrow.”


    “I was not senior enough to go to the first meeting on the 25th, but presumably, the main discussion at that meeting should still be security issues. After all, no one thought that the euro would collapse so quickly..."


    When Lu Xiujun saw this, he could only smile bitterly and could not say anything else.


    “In fact, it should be expected that the euro will be negatively affected...”


    Huai Guomo’s tone was slightly filled with resentment: “Although the Balkans do not use the euro, it is called the European powder keg after all. Once chaos breaks out, it will inevitably affect the whole of Europe, and the euro happens to be the whole of Europe. The currency spawned by the globalization issue has just been issued, and even in EU countries it is still circulating under a dual-track system of local currency and euro. This is the most vulnerable time..."


    “I’m afraid this is something that the superiors can’t figure out.”


    Ding Gaoheng interrupted Huai Guomo:


    “Logically speaking, there is no reason why those cunning old foxes in Europe can’t think of the problems that uneconomical people like you and me can think of.”


    “Since the Allied Operation was initiated with their support, according to our normal thinking, we must have had a response plan in advance... Who would have thought that I was really unprepared... Isn’t this deserved..."


    “Actually, this is not surprising…”


    ?Listening to Ding Gaoheng''s complaints, Chang Haonan suddenly remembered a joke, so he suppressed a smile and continued:


    “If you pick out a single European country, they may all be old foxes for hundreds of years, but if you combine them into the European Union, they may not be able to perform at their respective levels.”


    “Just like I heard a saying, it’s a typical EU organization. It has a British director, a French director, and an Italian section chief.”


    “The typical EU agency official combines Italian organizational skills, German flexibility, French humility, Belgian imagination, Dutch generosity and British sincerity…”


    ∣


    ?When Chang Haonan first spoke, everyone thought he was talking seriously.


    It wasn’t until he got to the part about “the flexibility of the Germans and the humility of the French” that he finally realized that this was a bad joke.


    By the end, several of them couldn’t even hold back their laughter.


    “In short, it is quite reasonable for such an institution to make some brain-dead decisions at critical moments...”


    Chang Haonan concluded:


    “And this should be an opportunity for us.”


    ??Everyone who had just laughed for a while also calmed down when they heard this, but they didn''t answer. They just looked at Chang Haonan and motioned for him to continue.


    Especially Ding Gaoheng.


    Although the business of the Science and Technology Commission does not directly involve finance, almost all bulk commodities and orders in China''s import and export to Europe are related to it, especially the equipment industry and aviation industry, which have broken the ice in relations with Europe in recent years. Top priority.


    So when he goes to the meeting the day after tomorrow, he still has some say in trade.


    Of course, on the other hand, as the head of the defense industry, he really has nothing to say on other topics... It would be better to listen to what Chang Haonan has to say.


    ??Although the latter''s ideas are often not mature and require further polishing and processing by Ding Gaoheng in details before he can continue to report, in terms of the openness of ideas, no one can match it...


    There is no need for Chang Haonan to be pretentious now in the Science and Technology Committee, and he immediately said:


    “As Director Huai said just now, the euro must be saved. Otherwise, letting the U.S. dollar dominate will not be a good thing for us to join the WTO, or for our trade after joining the WTO.”


    “Director Dante said that the EU was responsible for its own actions this time... In fact, he is right. The Americans are indeed the main force in the Allied operations. However, the situation has deteriorated to this point, and the Europeans themselves are indispensable behind it.”


    “Now that the euro needs to save itself, there is only one way out, which is to find a strong economy to support the credit of the euro.”


    "This economy must first have strong production capacity, be able to provide industrial supplies to the EU in a long-term and stable manner, and be able to undertake European capital exports; secondly, it must have the motivation to strategically support the growth of the euro, and not be worried, or at least not afraid of standing still. On the opposite side of the United States; in the end, it must be large enough and relatively monolithic internally. Only in this way can it withstand the pressure from the east coast of the Pacific and help the euro compete with the US dollar..."


    Everyone is a sensible person, so what we have said is basically equivalent to making it clear.


    An economy that satisfies the above three conditions at the same time…


    Huaxia said it would be better to report my ID number directly.


    "so."


    ?Chang Haonan looked around half a week in front of him:


    “Whether it is from the perspective of teaching them a lesson, or from the perspective of adding icing on the cake rather than providing help in the snow, there is no need for us to act in such a hurry..."


    (End of this chapter)