<h4>Chapter 877: Chapter 762 Central Bank Meeting (Subscribe please!)</h4><h4></h4>


    Just as the loan of over twenty trillion Myanmar Kyat was finalized,


    this news was immediately ryed back to the domestic front.


    Early in the morning,


    Beijing.


    Central Bank.


    International Division.


    The head, Yuan Yi, organized a seminar.


    He invited the department’s main members and some experts from research institutes specializing in economy and currency.


    After providing such arge loan to Myanmar,


    post-loan risk control was a must.


    Only now the situation was a bitplicated. Currently, Myanmar’s economic development had no issues, but its currency problem had suddenly be more pronounced, giving the leaders of the Central Bank quite a headache.


    One country.


    The situation with two types of currency is not umon in Huaxia.


    But like what was happening in Myanmar at the moment,


    where the Asia Dor, a minority currency, was ying an increasingly important role in the main currency cirction regions and even directly participating in economic activities—this left them somewhat bewildered.


    It was as unimaginable as the Hong Kong Dor suddenly bing circted and settled for value preservation within the domestic market.


    This was an unprecedented situation.


    There were no prior examples.


    "At the end ofst year, we provided a 160 billion RMB loan to Myanmar to support their economic development, improve people’s livelihoods, and carry outrge-scale infrastructure construction. This money was gradually converted by the Myanmar Central Bank at the international exchange rate.


    Due to the massive influx of Myanmar Kyat into the market, coupled with excessive issuance by the Myanmar government, the depreciation of the domestic currency value of the Myanmar Kyat began, which was within our expectations. The stability of the Asia Dor’s value was also anticipated.


    However, what we did not expect was that the Asia Dor, during the process of depreciation of the Myanmar Kyat, became a capital risk hedge pool for the people of Myanmar. Since they could noty hands on Myanmar’s US dor reserves, they discovered that the Asia Dor could be freely exchanged and started treating it as a value-preserving currency simr to the US dor, resulting in a massive exchange of it, which led to the Myanmar Kyat participating extensively in Myanmar’s domestic economic and savings activities.


    That is not the main issue. Generally,mercial bank loans require a deposit reserve ratio, a portion of which must be handed over to the Central Bank to secure the public’s deposits and withdrawals, as well as to ensure the safety of the residents andpanies’ deposits, controlling the total volume of domestic currency cirction.


    But Myanmar Bank does not have this restriction; all Myanmar Kyat proceeds can be loaned outpletely, which has resulted in the market cirction volume of the Myanmar Kyatpletely exceeding initial expectations, and the depreciation forecast for the Myanmar Kyat will be longer and more severe.


    This is not just a domestic affair for Myanmar; it has even begun to affect our trade imports and exports with Myanmar, causing many of our domestic enterprises to join in this behavior to ensure the safety of their funds.


    The purpose of this meeting is to garner collective wisdom, to explore the potential impact this will have on trade between our country and Myanmar, and even on the future economic development within Myanmar. The higher-ups ce great importance on this matter."


    Yuan Yi started the meeting by exining the current situation in detail.


    The experts seated all looked through the documents in their hands, feeling more and more rmed the more they read.


    It was as if Myanmar had gone mad.


    ?ree??ebnσvel


    How could such a situation be allowed to ur.


    "Weren’t there restrictions on the exchange between the Myanmar Kyat and the Asia Dor before? When were these lifted?" one expert, who had been involved in the loan to Myanmar, flipped through the documents at hand, unable to find the answer to this question.


    "We still cannot determine the exact time. The Myanmar Central Bank has not released any rted information, and we do not have the Myanmar government’s work report. We only know there was a limit before, but when it was reached, it was as if the limit no longer existed.


    We estimate that the major interest groups in Myanmar exerted their influence and collectively lifted this restriction to facilitate their asset preservation. You must understand, the amount of Myanmar Kyat they held collectively was enormous, and keeping it in Myanmar banks would have resulted in severe losses.


    The justification is also easy to find: on one hand, Myanmar Bank holds half of the disbursement rights for the RMB, and on the other, the economic activities in the Myanmar Economic Zone and other areas of Myanmar are increasing daily, so the possibilities are numerous."


    Yuan Yi responded,


    which was as good as saying nothing.


    Experts looked at him speechlessly.


    Yuan Yi continued to sip his tea calmly, rolling his eyes as if to say, "Why are you asking me about something I don’t know?"


    The expert thought for a moment then asked, "So the current problem is, without the constraint of reserve requirements, there’s ardent demand for value preservation from all sectors of Myanmar society, leading to Myanmar Bank holding a vast amount of Myanmar Kyat. Since Myanmar Bank is unwilling to suffer a loss from devaluation and is aggressively investing, has Myanmar Kyat’s domestic liquiditypletely spiraled out of control?"


    "Yes," Yuan Yi nodded.


    "At this rate, Myanmar’s intion rate will be frighteningly high. Lang Cai can’t be unaware of this," the expert expressed doubtfully.


    Yuan Yi replied, "Of course he’s aware, but we now believe that Lang Cai has a grander scheme. They’ve also tasted the benefits of economic stimulus. The money we’ve provided is finite; once it’s used up, it’s gone.


    Lang Cai probably wants to make a strong effort once again, using external forces to build Myanmar in one fell swoop. However, this is all spection for now. We can’t know the specifics yet, but a clue can be seen from the fact that the budget was exceeded this time."


    Another expert interjected, "It might not be Lang Cai’s intention; it could be the result of thebined efforts of major interest groups in Myanmar. Lang Cai might have had topromise and agree to the over-budget n."


    "I agree with this view as well. It’s likely that Lang Cai didn’t want to print money butpromised in the end, fearing that he couldn’t stem the tide, especially considering the immense power of the interest groups," another person added.


    "I disagree; how influential Lang Cai is in Myanmar needs no further discussion. Even if hepromised, he wouldn’t do sopletely unconditionally, adding fuel to the fire," Liu Jin, who had been silent until now, spoke.


    Everyone listened and agreed.


    Compromise was possible.


    But Lang Cai’s authority had not reached the point where he had to totally and unconditionallypromise and exacerbate the situation.


    If it’s notpromise.


    Then, if not the proactive approach mentioned before, there must be another objective.


    "Academician Liu, what do you think?" Yuan Yi asked. Liu Jin was that Academician Liu.


    After considering, Liu Jin spoke, "I also disagree with the assertion that Lang Cai wants toplete construction in one go. Lang Cai is not that kind of person; it’s determined by his personality. I believe he has a different motive."


    "What motive?" Yuan Yi asked with interest.


    "The abolition of Asia Dor," Liu Jin stated cidly.


    Upon hearing this, the room fell silent. Abolishing the Asia Dor... Logically, it seemed to make sense.


    Liu Jin continued to exin, "It is virtually impossible for Lang Cai to abolish the Asia Dor through administrative order right now. Ling won’t agree, the Myanmar Economic Zone won’t agree, and they hold important strategic positions and are not weak. Lang Cai cannot solve the Asia Dor issue militarily.


    So he only has economic and currency measures left. Economically, the Myanmar Economic Zone has already achieved preliminary industrialization, shares borders with three countries, and has unimpeded roads, making it economically independent from Lang Cai’s control.


    So, it alles down to currency.


    The disappearance of exchange restrictions, the current loans, and the potential for more loans in the future are all parts of a trap set by Lang Cai. He not only resolves the funding for development but also eliminates a rival


    The oue is self-evident; Lang Cai, holding the initiative and all the advantageous conditions and being the legitimate ruler of Myanmar, will surely be the final winner, of course, if nothing unexpected happens."


    "What kind of unexpected?" Yuan Yi pressed.


    "Many things can ur. There are still two years left in Lang Cai’s term as President. Two years from now, the new President’s stance on the Asia Dor may change, and the longer the time, therger the variables. However, it’s certain that the Asia Dor will be incorporated into the Myanmar Kyat system," Liu Jin shook his head.


    As Liu Jin spoke, a flicker of doubt passed through his eyes since the Asia Dor didn’t seem like a passive entity, nor did Ling, but he couldn’t see how the Asia Dor had any hope of winning.


    Yuan Yi listened and fell silent.


    Muttering something unproductive.


    The discussion then continued with other topics of the day.


    "We can now be certain that Myanmar’s construction development will continue for a considerable period. Our Huaxiapanies are securing more and more projects. Besides the RMB-funded projects, other additional projects are being exchanged for Asia Dors at the first opportunity.


    Due to Myanmar Central Bank’s restrictions, these funds cannot be massively converted into US dors and converting them into RMB would mean our exchange rate losses would be considerable. Thus, these funds have not been transferred back to our country and are still with Myanmar Bank.


    Since Myanmar Bank is not the Myanmar Central Bank, they hold many US dors and other foreign currencies but are under no obligation to exchange foreign currency for our enterprises. Therefore,st week Myanmar Bank proposed to our bank arge-scale opening of free exchange between Asia Dor and RMB.


    This aims to address the issue of ourpanies’ earnings being stuck and unable to return to the country. Consequently, this would mean we officially treat the Asia Dor as one type of foreign exchange reserve. Regarding this issue, what opinions and suggestions do you have?"