. 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.