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U.S. puts India on ‘currency manipulators’ monitoring list
Why is it in news?
- The U.S. Treasury put India to a watch list of countries it suspects of taking measures to devalue their currencies against the dollar.
Details:
- S. Treasury labeled Switzerland and Vietnam as currency manipulators.
- Switzerland and Vietnam had intervened heavily in currency markets to prevent effective balance of payments adjustments.
Treasury’s criteria:
- To be labeled a manipulator by the U.S. Treasury, countries must at least have a $20 billion-plus bilateral trade surplus.
- The U.S. foreign currency intervention exceeding 2% of gross domestic product and a global current account surplus exceeding 2% of GDP.
India’s interventions:
- The Treasury's monitoring list of countries has hit 10, with the additions of Taiwan, Thailand and India.
- Others include China, Japan, Korea, Germany, Italy, Singapore and Malaysia.
- The U.S. also said that India had also intervened in the foreign exchange market, but did not meet other requirements to warrant designation as manipulators.