. Last Updated: 07/27/2016

Soros Predicts Russia Currency Board

NEW YORK -- U.S. financier George Soros predicted Thursday that economic conditions in Russia would make the creation of a currency board likely.

"I think Russia may well end up with a currency board further down the road," Soros said, adding that he believed the creation would be "preceded by accelerating inflation."

"A currency board would stabilize the situation," he said. "But I don't think conditions [now] are suitable."

"I think it will come only after the parliamentary elections because that will clarify the situation."

A currency board would relieve the Central Bank of much of its traditional power and establish a system in which the value of the national currency would be tied to that of a currency of reference, generally the dollar.

Soros added however that he had never discussed Russia's economic situation with Prime Minister Yevgeny Primakov.