Soros: Dollar ‘no longer’ reserve currency

Aaron Dykes
April 9, 2011

During his Bretton Woods II weekend conference, billionaire financier George Soros has issued many bold statements, not the least of which included claiming that the Dollar had already fallen as the world’s reserve currency, and is now reduced to sharing the role.

In an interview with Bloomberg, Soros stated:

The big question is whether the U.S. dollar should be the reserve currency; it no longer is, it shares that role with the euro, other currencies, and commodities. But it’s not just gold being used as a substitute, but oil too, which is putting upward pressure on the market.

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Soros has convened the Bretton Woods II event in hopes of leading financial reforms and formulating a replacement to the dollar on the world market. He has argued that the original Bretton Woods agreements, which also created the World Bank and International Monetary Fund (IMF), have been outmoded and are in need of new arrangements.

Meanwhile, Soros prescribed more debt for the U.S., urging against calls to shrink the budget. “There is very a strong push to tighten the budget as a way to reduce government spending… In my opinion, the country could actually absorb some more debt in order to get the economy going,