“The prices of food products will continue growing in the international market. A period is starting when the warm climate will have a serious role,” said American billionaire George Soros to the French Les Echos newspaper. He says that the connection between the revolutions in the Middle East and the growth of prices is not so strong as people think. “In fact there were real revolutions in Egypt and Tunisia; people were tired of the corrupt government and demanded drastic changes. The movement started in Tunisia, covered Egypt and soon it may cover the entire Arabic world,” he said. Soros believes globally the risk of a currency war is growing. “The currency war has been declared already. Currently in fact there are two currency systems: the international and Chinese systems,” said Soros and added that in the Chinese system the current and investment balances are separated. Soros says that in Brazil, Korea and a number of Asian countries there is a tendency creating a risk of stopping the free formation of currency rates and movement, which will “defeat everyone”. “This will be a serious drawback. We have not reached such situation but are moving toward that direction. The danger of trade wars is becoming a key issue,” said Soros and added that China should be a part of the international currency system on the account of its special right to receive borrowings from the International Monetary Fund. On Saturday the finance ministers and central bank presidents of the G20 met in Paris, and all these countries, led by the US, were insisting on China to transform to an effective policy of their own currency, which will influence on the difference of prices between countries. Currently the currency nominal exchange rate is in force in the finance world, which means that these rates are compared only in a basket of products without taking into consideration the situations in national economies.
