Chapter 740: Profligate Woman

Suppose someone exchanges one hundred million international currency for ten billion star coins, and then, turns around and exchanges the ten billion star coins back into international currency. Not counting the handling fee, labor costs, etc., this transaction wouldn't earn much, only creating unnecessary hassle.

This person would need to earn more star coins in order to get more international currency, thus hollowing out Star Country's foreign exchange reserve and depreciating the star coin. This is the basic theory of currency blockade. Of course, futures and other financial derivatives are also involved, but Gu Fan didn't give these much thought.