16.1 C
New Delhi
Monday 20 January 2020

Happy with Modi, US Treasury withdraws India from currency monitoring list

The US Treasury Department noted that New Delhi has addressed some of the major concerns of the Trump administration

Washington, DC: The US on Tuesday removed India from its currency monitoring list of major trading partners, with its Treasury Department citing steps being taken by New Delhi which addressed some of the Trump administration’s major concerns.

For the first time, the US placed India in its currency monitoring list of countries in May 2018 with potentially questionable foreign exchange policies.

Switzerland is the other nation that has been removed by the US on Tuesday from its currency monitoring list which among others include China, Japan, South Korea, Germany, Italy, Ireland, Singapore, Malaysia and Vietnam.

“India has been removed from the monitoring list in this report, having met only one out of three criteria a significant bilateral surplus with the United States for two consecutive reports,” the Treasury Department said in its latest semi-annual report on macroeconomic and foreign exchange policies of major trading partners of the US sent to the Congress.

After purchasing foreign exchange on the net in 2017, the central bank steadily sold reserves for most of 2018, with net sales of foreign exchange reaching 1.7% of GDP over the year, the Treasury Department said.

India maintains ample reserves according to the IMF metrics for reserve adequacy, the Treasury Department said in its report.

In both Switzerland and India, there was a notable decline in 2018 in the scale and frequency of foreign exchange purchases, the report said.

“Neither Switzerland nor India met the criteria for having engaged in persistent, one-sided intervention in either the October 2018 report or this report. Both Switzerland and India have been removed from the monitoring list,” the Treasury said in its report running into over 40 pages.

A country can intentionally undervalue its currency by selling its own currency to drive down its value, making its exports cheaper and more competitive.

India for the first time was placed by the US in its currency monitoring list of countries with potentially questionable foreign exchange policies in May 2018 along with five other countries — China, Germany, Japan, South Korea and Switzerland.

In its next report in October 2018, the Treasury had said that India has made improvements and its name would be removed from the currency manipulation list in the next report.

“India’s circumstances have shifted markedly, as the central bank’s net sales of foreign exchange over the first six months of 2018 led net purchases over the four quarters through June 2018 to fall to $ 4 billion, or 0.2% of the GDP,” the Treasury had said in its October 2018 report.

Stay on top - Get daily news in your email inbox

Sirf Views

Pandits: 30 Years Since Being Ripped Apart

Pandits say, and rightly so, that their return to Kashmir cannot be pushed without ensuring a homeland for the Islam-ravaged community for conservation of their culture

Fear-Mongering In The Times Of CAA

No one lived in this country with so much fear before,” asserted a friend while dealing with India's newly amended citizenship...

CAA: Never Let A Good Crisis Go To Waste

So said Winston Churchill, a lesson for sure for Prime Miniter Narendra Modi who will use the opposition's calumny over CAA to his advantage

Archbishop Of Bangalore Spreading Canards About CAA

The letter of Archbishop Peter Machado to Prime Minister Narendra Modi, published in The Indian Express, is ridden with factual inaccuracies

Sabarimala: Why Even 7 Judges Weren’t Deemed Enough

For an answer, the reader will have to go through a history of cases similar to the Sabarimala dispute heard in the Supreme Court

Related Stories

Leave a Reply

For fearless journalism

%d bloggers like this: