Let’s chat – Yen interest rate hike
There is a way that predators play. They will lend out a currency that continues to depreciate or barely appreciates against the dollar - you ask, then what?
Then he will buy US stocks or other US dollar-denominated investment products that can make profits or rarely lose money - you will ask, what is the point?
Because he can obtain 1. U.S. dollar-denominated profits from the investment product itself. 2. The exchange difference from the exchange of Japanese yen at the time of sale. 3. And he only needs to pay the interest on the loan of yen.
Now let's see what happens if the yen appreciates?
1. The advantage of the U.S. dollar against the Japanese yen is reduced. 2. The profitability of financial products is relatively unstable. 3. The Japanese yen interest to be paid increases.
Let me ask you, when Japan announced today that it would continue to raise interest rates, wouldn’t you make the decision to take profits?
Suppose: What if the assets bought by some giants have a large share of the pie? After all, USDT and USDC are pegged to the US dollar! To a certain extent, it can barely be regarded as a financial product denominated in US dollars.
The chat is over. Mark $USDC
