US adds India to currency watch list with China
WASHINGTON: The US Treasury added India to its watch list of countries with potentially questionable foreign exchange policies, joining China and four others, according to a report issued Friday.
Treasury said the "monitoring list" includes those "major trading partners that merit close attention to their currency practices."
In addition to India, the semi-annual report to Congress names five countries that continue on the list from October: China, Germany, Japan, Korea and Switzerland.
Countries remain on the list for two report cycles "to help ensure that any improvement in performance versus the criteria is durable and is not due to temporary factors."
While no major trading partner was found to be manipulating its currency, five of those on the list meet two of the three criteria, while China is included because "it constitutes a disproportionate share of the overall US trade deficit."
The US has a deficit of $337 billion with China of a total global trade deficit of $566 billion, according to government data.
"We will continue to monitor and combat unfair currency practices, while encouraging policies and reforms to address large trade imbalances," US Treasury Secretary Steven Mnuchin said in a statement.
The Treasury report is required by Congress to identify countries that are trying to artificially manage the value of their currency to gain a trade advantage, for example by keeping the exchange rate low to promote cheaper exports.
The report said India, which has a $23 billion trade surplus with the United States, "increased its purchases of foreign exchange over the first three quarters of 2017," although the rupee still rose in value.
And while China -- which is at the center of a brewing trade dispute with Washington -- remained on the watch list, Treasury said "the Chinese currency generally moved against the dollar in a direction that should" help reduce China's trade surplus with the United States.
Germany also remained on the watch list, even though it is part of the European currency union, which means it cannot independently control the exchange rate for the euro.
Even so, the report notes that Germany "has the world's largest current account surplus" and has made "little to no progress in reducing this massive surplus the past three years."
Treasury called for all the countries on the list to implement economic reforms to address their surpluses.
Sriram Balu-Chennai-19 hours ago
Positive for India. Indian rupee will shoot up. BJP best Govt in free India
Shrikant Iyengar-19 hours ago
Thanks to Modiji for this! Credit where it is due..
Jai HindJai-19 hours ago
Another master stroke !!!!
I Am From Hell
I Am From Hell-dont know-18 hours ago
that means Modi is doing good for india. Support Modi
Srinivasan V-16 hours ago
This is very proud movement . A country calling itself No 1 is afraid of India. We are being termed with Germany and Japan. Every Indian should be proud of this
Rakesh Takru-18 hours ago
Hope our current government too takes appropriate steps in our national interest with changes coming up in the international market...........
Udit Sood-17 hours ago
Go India Go...will take away trade from China and become the next powerful nation close to the 1st world countries.
Rahul Warrier-15 hours ago
Nobody cared to talk about Indian Rupee when the great economist was our robot pm earlier
Maddy ?TitansRHere?-16 hours ago
BJP is the future of Developed India. Credit goes to Modi. Waiting for Islamic Congressi Piddi''s come barking.