India on U.S. Treasury currency watchlist again

India was also listed in the previous December 2020 report.

India is one of 11 countries on the US Treasury’s “ watch list ” for their foreign exchange practices according to the April 2021 edition of the (normally) semi-annual report that just came out, the first report of the Biden administration. India was also listed in the previous December 2020 report.

The report on the macroeconomic and exchange rate policies of the United States’ major trading partners, which is submitted to the United States Congress, examines the exchange rate practices of the 20 largest trading partners of the United States. Three criteria are used to examine partners: a significant bilateral trade surplus (at least $ 20 billion), a large current account surplus, and “persistent unilateral intervention” in foreign exchange markets. Taiwan, Switzerland and Vietnam met all three criteria.

The other ten countries on the Watchlist with India that deserve “special attention to their foreign exchange practices” according to the US Treasury are China, Japan, Korea, Germany, Ireland, Italy , Malaysia, Singapore, Thailand and Mexico. All except Ireland and Mexico were on the December 2020 list. India met two of the three criteria according to the report – the trade surplus test and the “persistent intervention” test. and unilateral ”.

“The Treasury is working tirelessly to respond to the efforts of foreign economies to artificially manipulate their monetary values, which unfairly disadvantages American workers,” Treasury Secretary Janet Yellen said on Friday.