US removes India from the currency watchlist
The US Treasury removed India along with Italy, Mexico, Thailand, and Vietnam from its currency watch list of major trading partners. India has been on this list for the past two years. Under this arrangement, the currency movements and macroeconomic policies of the major trading partners are closely monitored.
Decision after Straman’s meeting with the US Treasury
US Treasury Secretary Janet Yellen held a meeting with Finance Minister Nirmala Sitharaman on Friday ahead of her visit to India. The US Treasury took this step on the same day. The Ministry of Finance said in its semi-annual report to Parliament that China, Japan, South Korea, Germany, Malaysia, Singapore, and Taiwan are the seven countries on the current watch list.
What was said in the report?
The report stated that the countries removed from the list met only one of the three criteria in two consecutive reports. The report stated that China is under the close supervision of the Ministry of Finance for its failure to publicize its foreign exchange intervention and the lack of transparency in its exchange rate mechanism.
What is a currency watchlist?
The currency watch list is prepared by the United States. Its main objective is to closely monitor the currency activities and macroeconomic policies of the main partner countries. India has been on this list for the past two years.
India strengthens ties with America
Witness to the deepening of our economic and trade relations is that bilateral trade in goods between the two countries exceeded $100 billion in 2021, making it the largest volume of merchandise trade in economic history between India and the United States.
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