Currency Exchange

After successfully orchestrating the high stakes bidding war and securing a massive ₹110 crore payout from Dhirendra Khanna, Arjun wasted no time in executing his next move. What he wants to do is to short rubble.

In his previous life in 1991, As the Soviet Union crumbled, its economy was in the fall. Decades of inefficient central planning, a costly arms race with the U.S., and declining oil revenues had left the USSR on the brink of financial collapse. When Mikhail Gorbachev introduced economic reforms like Perestroika and Glasnost, the weakening grip of the Communist Party led to rising nationalist movements and internal chaos. The Soviet ruble, once artificially propped up by the state, was overvalued and non-convertible on international markets. Meanwhile, a thriving black market revealed its real worth to be a fraction of the official rate.

After the Soviet collapse in December 1991, Russia, under Boris Yeltsin, embraced "shock therapy", rapid economic liberalization to transition to capitalism. However, this move led to hyperinflation, economic turmoil, and the rapid devaluation of the ruble as price controls were lifted and state-owned assets were privatized at throwaway prices. The once-powerful Soviet economy collapsed into chaos, and foreign investors, including Western hedge funds, saw an opportunity to profit.

Among them was George Soros' Quantum Fund, known for its aggressive currency speculation. In the early 1990s, Soros and other financial players shorted the ruble, betting that it would plummet further due to Russia's economic instability and weak monetary policy. As Russia struggled with inflation exceeding 2,000%, the ruble continued to lose value, and short sellers made billions in profits.

For this reason, he needs US dollars but in 1990, India's foreign exchange reserves were tight. The country was still grappling with an economic crisis and needed every dollar it could get. The RBI controlled the flow of currency, and any significant movement of funds outside the country required government approval. Manmohan Singh, the then Finance Minister, was keen on implementing reforms, but he could only do so within the existing framework. To bypass these strict regulations, Arjun needed to tap into the web of relationships that connected the politicians and RBI officers who made such decisions.

Arjun wasn't new to the game of influence. His father, Rajesh Malhotra, had spent years cultivating relationships with some of the most influential figures in Indian politics especially in the Ministry of Finance and RBI. These connections were Arjun's trump card.

Arjun made a few discreet phone calls, setting the stage for what would be a carefully orchestrated meeting with some of the most powerful figures in Indian finance.

First, he reached out to Vikram Patel, an assistant governor at the RBI, someone his father had known for years. Patel was a gatekeeper for the central bank's foreign exchange approvals. Despite the bureaucratic hurdles, Arjun knew that with the right leverage, he could get Patel to consider his request.

The next connection was Manoj Tiwari, a key political figure with deep ties in the Finance Ministry. Tiwari was known for his influence in shaping economic policies, and his ability to speed up decisions was legendary. Arjun knew that with Tiwari's support, the RBI's approval would come quicker.

The meeting took place at an exclusive, quiet hotel in South Mumbai, far from the prying eyes of the press. Arjun sat across from Vikram Patel and Manoj Tiwari, both men who held the keys to unlocking his financial aspirations.

Looking at the Arjun, Manoj Tiwari said "Malhotra family is quite lively now a days, I heard you just made a lot of money by selling your textile business" Arjun just smiled and said "It's just we are lucky that our competitor was a fool" Manoj nodded "You don't have to be humble, it's your capability. I have talked to your father, I know why you are here, you know you gave me a headache" Arjun just smiled knowing where its heading. At this time Vikram, who was sitting, spoke.

"Arjun, I understand your ambition," adjusting his glasses. "But you know how sensitive these approvals are. Our foreign exchange reserves are limited, and there are strict guidelines."

Arjun nodded, his face calm but determined. "I'm not asking for charity, Mr. Patel. This is an investment that will benefit India in the long run. The money I'm converting into US dollars is not just for personal gain, this will open doors for foreign investment into India, helping improve our reserves and boost the economy."

Manoj Tiwari, ever the pragmatist, added, "That's a compelling argument, Arjun, but you must understand the politics. The process is slow, and people like us need to make sure we aren't left holding the bag if things go wrong."

Arjun smiled knowingly. "I'm aware of the intricacies of the process, Mr. Tiwari. I'm asking for your support. In return, you'll see your share at your home in the evening."

There it was, he deals. The quiet nod from Patel and the approving look from Tiwari confirmed it. With their backing, Arjun knew that he had enough influence to get his request pushed through the RBI.

With Patel and Tiwari on his side, Arjun was able to bypass the typical red tape that would have otherwise delayed the process for weeks, even months. The RBI had to go through its usual protocols, but under the guidance of Patel, the approval for ₹50 crore to be converted into US dollars was fast-tracked.

However, Arjun knew that while he had the necessary connections, the Indian bureaucracy was always ready to throw in a curveball. There were always figures like RBI officers or government officials who were looking to get their share. Arjun didn't mind; he had anticipated this. So, he made sure that part of his funds went into the right hands ensuring that the process went smoothly.

A week later, Arjun received the final approval. His ₹50 crore had been converted into $20 million USD. It wasn't just the money; it was the opening of a new chapter in his journey to dominate the global markets. The RBI's strict regulations had been bypassed with the help of political and bureaucratic influence, all carefully woven together by Arjun.

With the $20 million USD now in his hands, Arjun was ready to step into the global market. He knew that while India's stock market was in its infancy, the global economy was much more fluid. Now that he had the financial freedom to move beyond India's borders, he could make strategic investments and grow his wealth at an exponential rate. But for now, the world was his oyster.

As he looked out the window of his office in Mumbai, he thought about the future. The system had been exploited, yes, but in a way that would not just benefit him, Arjun had learned early on that in India, things worked when the right people got their cut. And with his next steps, he would ensure that he was always ahead of the curve.

This was just the beginning. The real game was about to start.