"Renminbi?"

Abrahim was stunned for a moment.

But he waved his hands repeatedly without thinking.

"No, no, at present, our country's landing funds only recognize the US dollar and Sri Lankan rupees, and no other currencies recognize it. This is the resolution of the authorities and there is no way to change it."

After saying that, Abrahim's eyes were full of blame.

What a joke?

How important is a country's foreign exchange reserves?

Especially in the Maldives, there are only a few big children in their pockets and they still owe a lot of foreign debts.

How is that possible?

For China, foreign exchange reserves can also be said to increase their risk resistance.

And for the Maldives, it is the lifeblood.

He actually paid ashore in RMB?

Lin Lingdong had expected it!

Instead, he acted as if he was taken for granted and asked: "Why can't this work? You and me have trade demands on both sides, but I want to carry out industry, how can I do without raw materials? All of these require import."

Abrahim choked.

Lin Lingdong continued: "My technology, resources, and my customers are all in China, and all supporting facilities are also in China. Without the support of China, how can I carry out industry? Will I be allowed to import in India? I can't support it, and there are always exceptions in things, so can't I apply for it? This is an investment of 250 million yuan? We can settle the counterpart."

After finishing his speech, he looked straight at Abrahim.

Abrahim was silent.

Lin Lingdong's heart beat slightly and he began to get nervous.

Can it be successful?

Even in his previous life, he had never planned such a big deal.

Be bold and promote the counterpart settlement between the two countries!

This is related to monetary policy at the national level.

If successful...

It's not just about investing in a port.

He is very likely to eat into a giant crocodile in the Maldives!!!

Generally speaking, there are usually three ways for a country to absorb foreign exchange reserves.

First, export exchange.

Second, put it into the money market.

Third, absorb foreign capital.

Let’s talk about the third point, international investment.

For example, the funds originally planned to be prepared by Lin Lingdong, which is 1 million US dollars, will it be 1 million US dollars when invested in the Maldives?

No.

This money will first enter the Maldives International Bank and be converted into Maldives currency, Rafia.

1 million US dollars fell steadily into the pocket of the Maldives and became the other party's foreign exchange reserves. The US dollar is the world's currency and is universal. With this money, they can buy anything in the world.

And what about Linling East?

There are only 7.1 million Rafia in hand.

This money can only be consumed in the Maldives.

What a scam is coming.

If you invest in India, Linlingdong can easily make use of the money, buy steel, cement, and cranes in India, and use this money to hire workers to build a dock at a low price.

Even if the investment is successfully implemented.

Everyone was very happy.

The Indian authorities are extremely satisfied.

Because of the money earned by this terminal, foreign ships come to dock, and the dock management fees and usage fees will be paid in US dollars. The money received will increase the Maldives' foreign exchange reserves.

For example, invest in a clothing factory.

If this clothing factory is exporting products, it also has to pass through the Maldives State Bank, and can earn more US dollars and increase the Maldives' foreign exchange reserves.

For example, China, the amount of foreign capital it absorbs every year is huge.

Use foreign capital to tap the remaining domestic output value.

For example, Foxconn entered the mainland and developed millions of employees in 30 years. This company alone accounts for 4% of China's annual export volume. How many foreign exchange reserves will it bring?

This is what foreign investment means.

...

But why, the Maldives accepts foreign investment, only the US dollar, but not the RMB?

This is related to a liquidity issue.

The US dollar is the world's currency, and with this money, the Maldives can buy anything in the world.

But with the RMB, you can only go to China to consume and import Chinese products.

But the problem is that the journey is too long and it is not suitable.

Their biggest trading partner is India. They have formal economic and trade cooperation, and they have the most-favored-nation treatment, low tariffs, tacit cooperation, and they are neighbors. They arrive in two days of shipping.

It greatly reduces costs.

Can you go to China?

The shipping takes 14 days and requires high tariffs, which greatly increases the achievements.

It's not worth it at all.

But this is not the most serious.

If the 250 million yuan is just held, it would be fine, and it would be spent when needed, how cool would it be?

But the accounts are not calculated like this.

Linlingdong invested 250 million yuan, and all of this money was spent. It required buying cranes, imported concrete to fill the sea, and a large amount of mechanical and electrical equipment were needed. After it was exchanged for Lafia, all these needed to be solved by the Maldives.

But what is in Maldives?

There is nothing.

The country has no resources, no energy, no production capacity, and lacks basic payment capacity.

Even the workers are overseas.

Linlingdong injected 250 million yuan, corresponding to 30 million US dollars. If all of them are spent, these will be paid by the Maldives authorities.

It’s okay to be good to be on the east side of Linling.

If they are a little bit slight, they will not only not be able to make a penny, but they may have to pay for it.

Pay a lot of valuable foreign exchange and press 250 million yuan in your hands.

If you pay a high cost to import Chinese products, wouldn’t you lose the most?

...

Abrahim is even more confused.

He sighed with his hands behind his back.

It's difficult, difficult!

The Maldives have too many difficulties and he feels powerless.

But what is even more depressed is why I discussed this issue with myself?

He felt like he was already confused.

It is also reasonable and well-founded.

Is it that difficult to leave an investment?

From Abrahim's own perspective, he wanted to agree at once.

250 million yuan, equivalent to 30 million US dollars, is much easier. Such investment is acceptable and suitable.

If investment is facilitated, it will be his most impressive achievement since he came to power.

It can be taken further in Congress.

But he shook his head rationally.
To be continued...