US Retains India In Currency Manipulation Watchlist

The US has once again retained India in its currency manipulation watchlist among other nations. As per the US Treasury department's report 11 economies warrant placement on 'Monitoring list' of major trading partners including China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand, and Mexico.

India first was included in the list in December 2018 and then removed in 2019. And then again was added to the list in December 2020.

Vietnam, Switzerland and Taiwan tripped the department's thresholds for possible currency manipulation under a 2015 US trade law, but it did not formally give such a label to the economies.

Criteria sought for putting this label

> Bilateral trade surplus with the US of upwards of $20 billion

> Current account surplus of at least 3 percent of Gross Domestic Product (GDP)

> Net purchases of foreign currency of 2 percent of GDP over 12 months.

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