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US Adds India To Currency Monitoring List With China

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| April 14 , 2018 , 16:49 IST

The US Treasury Department on Friday added India to a watch list that monitors countries' currency practices. The department in its report observed that the foreign exchange policies of six countries needed to be monitored. This follows the department's Semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. 

Earlier, the department had five countries on this list - China, Germany, Japan, Korea, and Switzerland - under this list. India is the latest addition.

"Treasury found that six major trading partners warrant placement on the “Monitoring List” of major trading partners that merit close attention to their currency practices, including five that continue on the list, China, Germany, Japan, Korea, and Switzerland, and India that has been added to the Monitoring List in this Report." reads a press release issued by the department.

U.S. Treasury Secretary Steven T. Mnuchin said, "The Treasury Department is working vigorously to ensure that trade is free, fair, and reciprocal so American workers and companies can compete and succeed globally. We will continue to monitor and combat unfair currency practices while encouraging policies and reforms to address large trade imbalances."

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According to the Treasury Department, the findings and recommendations are intended to combat potentially unfair currency practices, support the growth of free and fair trade, and secure stronger and more balanced global growth.

"Achieving these goals requires that all economies durably avoid macroeconomic, foreign exchange, and trade policies that facilitate unfair competitive advantage," the department noted.
 
These are the three key criteria on which the department's findings are based-

1. A significant bilateral trade surplus with the United States

2. A material current account surplus

3. Engaged in persistent one-sided intervention in the foreign exchange market