George Soros called the Chinese yuan the strongest currency in the world at a Reuters Newsmaker event this morning.
“Chinese currency is the strongest in the world, except you can’t own it,” Soros said.
Soros said that if China’s capital controls which limit the yuan’s use were removed, the currency would grow into a competitor for the U.S. dollar as the world’s reserve currency.
But Soros said it is likely the Chinese would continue to engage in bilateral currency relationships, with Hong Kong the expanding market for exchange.
Soros said the situation would be similar to the eurodollar’s position in London.