The US has removed India from its currency monitoring list. This is considered a big relief for India. America has announced this at a time when US Finance Minister Janet Yellen is visiting India and after some time US President Joe Biden is expected to meet PM Narendra Modi at the G-20 conference. In such a situation, many big meanings are also being extracted from this decision of America. America has taken this decision on the basis of the report given by its Treasury Department. Recently, the Treasury Department submitted a report to Congress. In this biennial report it was said that India’s name has now been removed from the currency monitoring list. The biggest benefit of this will be the trade relations between the two countries. In the coming days, the trade between the two countries will increase further.
The names of these countries were also removed
Apart from India, the countries whose names have been removed from this list also include the names of Italy, Mexico, Thailand and Vietnam. It has been said in the report that these countries have fulfilled one of the three criteria, due to which their names have been removed from this list. Similar reports had come out about India and other countries in two consecutive reports.
When was India’s name included in this list?
Explain that in June this year, the US Treasury Department had placed India on the watch list of currency manipulators due to its significant bilateral trade surplus. India’s name was included in this list for the third time after the start of the world-wide corona pandemic.
After which report India was removed from this list
Significantly, the Treasury Department of America prepares this list to monitor the currency of its major partners. In this, he closely monitors the currency movements of major trading partners and their other monitoring policies. For the last two years, India was included in this currency monitoring list of American.
This country is still included in this list
Currently, the names of China, Japan, South Korea, Germany, Malaysia, Singapore and Taiwan have been retained in the list of the US Treasury Department. Regarding China, it has been clearly stated in the report that it has failed to publish its foreign exchange interventions. The report also pointed to the lack of transparency in the exchange rate mechanism.
On what basis the report is prepared
Let us tell you that this list of the US Treasury Department is prepared on the basis of three parameters. The first is whether the country is manipulating the exchange rate between its currency and the US dollar to gain an unfair competitive advantage in international trade or to take advantage of a balance of payments adjustment. Apart from this, the size of the bilateral trade surplus with the US, the current account surplus and the continuous unilateral intervention in the foreign exchange market also tighten that country.
these are also base
In addition, it also deliberates on foreign exchange reserve coverage, currency development, exchange rate practices, capital controls and monetary policy. According to this report, India’s foreign exchange reserves stood at $526.5 billion at the end of June. This is about 16 percent of India’s GDP. According to the report, India also had a trade surplus of $48 billion with the US. It has been clarified in the report that transparency has been fixed in India’s economic policy.