"Wooooaaah!"
"That's it—we've got it now!"
The foreign exchange officers at the Bank of Thailand, who had been barely holding the line against the relentless assault led by George Soros and the hedge funds, erupted into deafening cheers as the situation flipped on its head thanks to the massive support fire from Hong Kong and other Southeast Asian central banks.
[THB: 26.18 (+1.21)]
Unable to contain their excitement, people rose from their seats, hugged one another, clenched their fists, and expressed their joy with their whole bodies.
"We won! We actually won!"
"How do you like that, hedge fund scum!"
Piyaphong leaned back in his chair and let out a deep sigh of relief as he watched the rapidly rising baht-to-dollar exchange rate on the monitor—like the fierce battle moments ago had all been a lie.
At that moment, Director Damtathui, whose expression had been stiff, slightly relaxed and clapped his hands loudly.
"Everyone, attention!"
The applause and cheers gradually faded as all eyes turned to Director Damtathui.
"I know you're all thrilled, but this fight with the hedge funds isn't over yet! So calm down, push the exchange rate even higher, and make sure those bastards never even think about messing with us again!"
Still seated, Piyaphong looked up at the director and asked:
"What's our target exchange rate?"
"There isn't one. The central banks of Hong Kong, Singapore, and Malaysia have agreed to form a united front. From now on, we're going to buy up every last baht and send the hedge funds into a full-blown panic."
The foreign exchange officers, fired up by the declaration, let out shouts of determination.
They had been taking a beating until now, so the chance to strike back naturally stirred them.
Director Damtathui, clearly aware of the expectant gazes around him, straightened up and said with firm resolve:
"We've just received approval for an additional $1 billion. Let's trigger a short squeeze and make those hedge fund bastards pay!"
One of the FX officers suddenly chimed in enthusiastically:
"Are we really about to crush the arrogance of George Soros—the guy who brought the Bank of England to its knees? Just imagining it gives me chills!"
"Wahahaha!"
Everyone burst into laughter at the playful remark.
Piyaphong also smiled through his scruffy, unshaven beard.
A short squeeze refers to a situation where traders who had shorted a stock or asset expecting a decline are forced to buy it back at rising prices to minimize losses—causing the price to surge even more.
Most of the hedge funds attacking the baht had taken short positions using leverage in both the futures and spot markets.
As the exchange rate surged, they were forced to repurchase the baht they had previously dumped in order to cut their losses.
That, in turn, pushed the baht's value even higher—and every jump in the rate translated directly into more losses for the hedge funds.
With the central banks of Southeast Asia pouring in dollars and aggressively buying baht, the exchange rate broke through 26 baht to the dollar and surged past 25.
The momentum was now clearly in favor of the Thai government. But as Piyaphong stared at the exchange rate chart on his monitor, an uneasy feeling crept over him.
"Will George Soros and the hedge funds really give up their attack on the baht just like that…?"
Though the immediate crisis had been averted with the help of the central banks in Hong Kong and other Southeast Asian countries, Thailand's foreign reserves had taken a heavy hit in the effort to defend the baht—leaving Piyaphong even more worried.
***
Quantum Fund Executive Office, 7th Avenue, Manhattan, New York.
Sitting on the sofa with one leg crossed, George Soros calmly spoke as he watched the baht exchange rate chart on the monitor in front of him and the live CNBC broadcast on the television screen.
"For the central banks of Hong Kong, Singapore, and Malaysia to join forces and form a united front—that really caught us off guard."
Despite having taken significant losses after an unexpected variable derailed their $1 billion offensive, George Soros showed no change in expression. If anything, he remained coldly composed.
Rodney, the CIO seated to his left, responded to Soros's detached tone.
"We should have considered this possibility in advance. That was my oversight."
Soros picked up the teacup in front of him but set it back down upon realizing the coffee had gone cold.
"I knew the Thai government had signed agreements with other Southeast Asian nations to cooperate in the event of a currency crisis—but I never expected them to act so decisively. You can't blame yourself for that."
At that, Ian, the chief manager seated to the right, chimed in with a hint of regret.
"Judging by their dual exchange rate system and the sweeping ban on all financial institutions—including foreign banks operating in Thailand—from issuing baht-denominated loans, it's clear the Thai government has been pushed to the brink. It's a shame."
The dual exchange rate system refers to a setup where the official exchange rate set by the government differs from the rate applied in the market.
And the ban on baht loans was intended to cut off the currency supply to speculators, including hedge funds.
It was obvious that such extreme measures would hurt Thailand in the global financial market. The fact that the Thai government and the BOT (Bank of Thailand) were willing to go that far was a clear sign of just how desperate the situation had become.
Just then, the keyphone on the desk rang. Ian leaned forward and pressed the speaker button.
"What is it?"
A voice on the other end urgently relayed breaking news.
[Just now, the Bank of Thailand announced an interest rate hike on 3-month interbank lending—from 13% to 19.5%!]
"Is that for real?"
Ian asked in shock, and the voice quickly replied:
[Yes. It was just announced on Thailand's national broadcaster, NBT, and both Bloomberg and Reuters have released alerts!]
"Tsk."
At that moment, CNBC began displaying the news on its ticker. George Soros crossed his arms and clicked his tongue.
"Got it. Keep me updated if anything else comes in."
Taking the cue from Soros, Ian turned off the speakerphone.
"To hike the interest rate by 6.5% in one go… the Thai government must be dead serious."
At Rodney's remark, Soros leaned back and asked in a slightly subdued voice:
"Are the three central banks still buying up baht?"
Ian, the chief manager, quickly checked the Bloomberg terminal and replied immediately.
"Yes, the total purchase amount has now exceeded $5 billion."
Rodney looked at George Soros seriously and asked,
"Are we going to push back?"
The opponent was certainly no pushover, but the Quantum Fund hadn't gone all in yet. Plus, other hedge funds were still in play—so there was still a fight worth having.
Ian leaned forward in his seat, eyes gleaming with determination.
"Hong Kong's a bit of a concern, but they're not going to burn through all of their foreign reserves to help Thailand. If we press hard a few more times, they'll have no choice but to back off and drop out of this fight."
"Hmm… I don't know…"
George Soros rubbed his chin thoughtfully. Then, he suddenly remembered Seok-won's long position on the baht.
"Lucky bastard… or maybe he actually predicted all this. But if he ends up on the other side next time, he's going to regret it—badly."
With that cold thought running through his mind, George Soros lifted his head, his decision made.
"You're right—this isn't the time to give up. The prey is too tempting. But when it's pouring, the smart move is to take shelter. Let's pull back for now."
Both men understood that even if they managed to win in a direct clash, the cost would be too high. So, despite their frustration, they didn't show it.
"Understood."
"As you wish."
As they responded, George Soros turned his sharp gaze to the TV screen showing a live broadcast of Thai Central Bank Governor Warit personally announcing the interest rate hike.
"A bold move, but it won't be long before they realize it was poison. That'll be the moment the baht suffocates."
***
By now, the sky outside was starting to lighten, but the trading floor at Eldorado Fund was still blazing with energy.
"After Asia, the central banks of Southeast Asia are continuing to buy up baht in the London forex market as well!"
Despite staying up all night, the team was still full of energy—likely because the rising baht had brought in big profits.
Standing with both hands in his pockets, Seok-won looked up at the large market display board mounted on the wall and asked:
"What's the exchange rate now?"
"24.5 baht to the dollar," Landon answered excitedly.
That was a 2-baht increase compared to when the hedge funds had first launched their attack.
"With the baht climbing this high and the hedge funds not making any serious counterattack, it looks like Boss was right—Round One ends in Thailand's favor."
Andrew smiled as he added,
"They probably never expected Hong Kong and the other Southeast Asian central banks to step in. They'll need time to reassess the situation."
"You think they'll come back with another offensive?"
"Now that they know we're not easy prey, they'll strike again—and next time, it'll be harder and faster."
Landon rubbed his chin thoughtfully.
"In that case, Thailand might be too exhausted from this round to defend itself again."
"Even a lion won't survive if it's surrounded and attacked by a pack of starving hyenas. Hoping Thailand can endure much longer might be too optimistic."
The two nodded in agreement.
"With Thailand and the Southeast Asian central banks now sweeping up baht in massive quantities, this is likely the peak. Let's liquidate all our positions."
"Understood."
Andrew quickly went over to Team Leader Tyler and relayed the instructions.
Glancing briefly at the flashing red baht exchange rate, Seok-won turned away from the trading floor without another word, as if there was nothing more to see.
Meanwhile, there was another place erupting in cheers as the baht staged a sharp rebound—the four major Japanese securities firms that had signed CDS option contracts with the Eldorado Fund.
"Yes!"
"We're saved!"
Nakamura, the division chief who had been stuck at the office all night anxiously watching the brutal battle between Thailand and the hedge funds, slammed his palm down on his desk as cheers erupted from his team.
"Hahaha!"
It was the brightest smile he had shown in days.
With the currency crisis that had shaken Thailand's economy finally showing signs of ending, there was hope that the plummeting stock market might rebound as well.
"Those damn Eldorado Fund guys… making outrageous demands. Serves them right!"
Section Chief Okamura said excitedly, his voice full of glee.
Nakamura, who had been walking around with a grim expression ever since the Thai SET Index began its nosedive, now burst out laughing as if a great weight had been lifted from his shoulders.
"Thanks to them, we don't have to pay a cent in penalties."
"Exactly! It's all thanks to your wise judgment, sir."
Okamura stuck close to Nakamura's side, doing his best to keep the good mood going.
"You must be exhausted. Why don't you head home now? There's nothing to worry about anymore."
Nakamura rolled up his sleeve to check his watch.
"The Thai stock market should be opening soon. I'll stick around to see how it starts."
"Shall I bring you a coffee, then?"
"Please."
Okamura nodded with a crisp, "Yes, sir," then gave a subtle signal to one of the uniformed female staff members nearby.
A short while later, Nakamura sat comfortably at his desk, sipping his coffee as he waited for the Thai market to open.
Just as he finished most of his cup, Okamura said beside him,
"It's about to open."
"Good. You've all worked hard through this ordeal. Let's just confirm the index is rebounding—and then call it a day. Go home and get some well-deserved rest."
"Thank you, sir."
But the moment the Thai stock market opened, the mood shifted in an instant.
Nakamura casually checked the monitor—only to see the SET Index plummet the moment trading began. His eyes widened, and his face went pale as he leapt to his feet.
"What the hell? What's going on?!"