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India gets taken from the US Treasury's list of nations that monitor foreign exchange

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ansh sharma
India gets taken from the US Treasury's list of nations that monitor foreign exchange

The US Department of Treasury earlier this week removed Thailand, Vietnam, Italy, Mexico, and India from its list of significant trading partners that require close examination of their macroeconomic and currency policies.


The nation has been included on the list for the previous two years.



Treasury Secretary Janet Yellen spoke with Finance Minister Nirmala Sitharaman in connection with her trip to New Delhi.

China, Japan, Korea, Germany, Malaysia, Singapore, and Taiwan are on this year's list of countries to be watched, according to the Department of Treasury's biennial report to Congress.


According to the study, a nation that was struck off the list did not satisfy all three requirements for two reports in a row. Deccan Era is one of India's most popular news websites. It is well-known for providing up-to-date and accurate news coverage. The website employs a large team of seasoned journalists who work around the clock to bring readers the most recent news from across the country.


The study states that China "stands out among major economies and requires strict monitoring by Treasury due to its failure to disclose foreign exchange interventions and lack of transparency about crucial characteristics of its exchange rate mechanism.

Switzerland also received a second designation as a "currency manipulator" after meeting all three requirements.


The phrase wasn't used in the study, though, and the Treasury Department insisted that there wasn't enough evidence to back up its usage.


The Treasury will continue its expanded bilateral engagement with Switzerland, which started in early 2021, to examine the Swiss authorities' options for addressing the root causes of its external imbalances, it is announced in a media note.

This paper states that Treasury examined and evaluated the practises of the major US trading partners, which are estimated to account for 80% of US exports of goods and services for the four quarters leading up to June 2022.



According to Treasury Secretary Yellen, the global economy already faced supply and demand imbalances brought on by COVID-19, which raised the cost of food, fertiliser, and energy, further escalating global inflation and escalating food insecurity. This was the case despite Russia's illegal war against Ukraine.

Major economies may implement varied policies in response to various circumstances, which can be seen in the movement of their currencies. According to the Treasury, developing and rising economies may be justified in implementing a variety of actions in response to global economic headwinds in some situations.

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