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India on U.S. Treasury Currency Monitoring List Again

U.S. Treasury Secretary Janet Yellen   | Photo Credit: AFP

India is one of 11 countries on the U.S. Treasury’s ‘Monitoring List’ with regard to their currency practices as per the April 2021 edition of the (normally) semi-annual report just released, the first report of the Biden administration. India was on the list in the previous report from December 2020 as well.

The Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, which is submitted to the U.S. Congress, reviews currency practices of the U.S.’s 20 biggest trading partners. Three criteria are used to review partners : a significant (at least $20 billion) bilateral trade surplus, a material current account surplus and ‘persistent one-sided intervention’ in forex markets. Taiwan , Switzerland and Vietnam met all three criteria.

The other ten countries on the Monitoring List with India that merit “close attention to their currency practices” according to the U.S. Treasury, are China, Japan, Korea, Germany, Ireland, Italy, Malaysia, Singapore, Thailand, and Mexico. All of these, except Ireland and Mexico, were on the December 2020 list. India met two of the three criteria according to the report – the trade surplus criterion and the “persistent, one-sided intervention” criterion.

“Treasury is working tirelessly to address efforts by foreign economies to artificially manipulate their currency values that put American workers at an unfair disadvantage,” Treasury Secretary Janet Yellen said on Friday.

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Printable version | May 16, 2021 3:12:54 AM | https://www.thehindu.com/news/international/india-on-us-treasury-currency-monitoring-list-again/article34338775.ece

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