U.S. puts India on ‘currency manipulators’ monitoring list

Source: Click here

News: The United States has added India along with Taiwan and Thailand to the ‘monitoring list’ of currency manipulating countries that includes major trading partners like China and six others.


Currency Manipulator

  • Currency Manipulator: The US Treasury department defines currency manipulation as when countries deliberately influence the exchange rate between their currency and the US dollar to gain unfair competitive advantage in international trade.
  • Criteria: To be labeled a manipulator by the U.S. Treasury, countries must fall under below mentioned criteria.
    • Country should atleast have a $20 billion-plus bilateral trade surplus with the U.S.
    • Foreign currency intervention exceeding 2% of gross domestic product and
    • Global current account surplus exceeding 2% of GDP.
  • Implications: Once a country is designated as a currency manipulator by the U.S., the next step taken by the US government is to seek negotiations with the government accused of manipulation
Print Friendly and PDF