Singapore Entrepreneurs Network & Startup Organization

(DAVOS) Bill Gates, whose net worth of US$46.6 billion makes him the world's richest person, is betting against the US dollar.

'I'm short the dollar,' Mr Gates, chairman of Microsoft Corp, told Charlie Rose in an interview at the World Economic Forum here. 'The ol' dollar, it's gonna go down.'

Mr Gates' concern that widening US budget and trade deficits are undermining the dollar was echoed here by policymakers including European Central Bank (ECB) president Jean-Claude Trichet and German Chancellor Gerhard Schroeder.

The dollar fell 21 per cent against a basket of six major currencies from the start of 2002 to the end of last year. The trade deficit hit a record US$609.3 billion last year and total US government debt rose 8.7 per cent to US$7.62 trillion in the past 12 months.

'It is a bit scary,' Mr Gates said. 'We're in uncharted territory when the world's reserve currency has so much outstanding debt.'

A week before Group of Seven officials meet to discuss currency policy, Mr Trichet repeated the ECB's concern over the dollar's drop to record lows against the euro.

Chinese central bank adviser Yu Yongding said here the US government should do more to tackle its record current account deficit and ease pressure on China to loosen its currency's peg to the dollar.

'The US should take the lead in putting its own house in order,' Mr Yu said. 'It's the root cause' of global imbalances. 'China will make its contribution, but the world should not put disproportionate pressure' on the country, he said. - Bloomberg