US Removes India from Its Currency Monitoring List
Switzerland is the other nation that has been removed by the US from its currency monitoring list.
The Quint DAILY
For impactful stories you just can’t miss
The Trump administration on Tuesday, 28 May, removed India from its currency monitoring list of major trading partners, citing certain developments and steps being taken by New Delhi which address some of its major concerns.
Switzerland is the other nation that has been removed by the US 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 US 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 net in 2017, the central bank steadily sold reserves for most of 2018, with net sales of foreign exchange reaching 1.7 percent of GDP over the year, it said.
India maintains ample reserves according to the IMF metrics for reserve adequacy, it said.
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.
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 USD 4 billion, or 0.2 percent of the GDP," the Treasury had said in its October 2018 report.
(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)
(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)
We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated.
Liked this story? We'll send you more. Subscribe to The Quint's newsletter and get selected stories delivered to your inbox every day. Click to get started.
The Quint is available on Telegram & WhatsApp too, click to join.
Read and Breaking News at the Quint, browse for more from news and business
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.