India has been removed from the US currency monitoring list along with Italy, Mexico, Thailand, and Vietnam. However, countries like China, Japan, Malaysia, Korea, Singapore, Taiwan, and Germany are a part of this currency monitoring list.
What is this US currency monitoring list?
It is a semi-annual report released by the US department of treasury. It reviews the foreign exchange rate and the impact of a country’s currency on the global economy. It monitors and reviews the currency practices of 20 major trading partners of the US.
There are three criteria to be included in this list –
1 -Country having a significant bilateral trade surplus with the United States with a surplus of at least dollar 15 billion.
2-A material current account surplus is one that is at least 3% of GDP or a surplus for which the treasury estimates there is a material current account gap using the Treasuries Global Exchange rate assessment framework.
3- The third one includes the net purchases of foreign currency having a one-sided intervention done at least for 8 out of 12 months in a year and these net purchases are at least two percent of an economy’s GDP over 12 months.
Therefore currently India was removed from this US currency monetary list as the US department of treasury found out that India did not lie in the above three criteria anymore. This move came on a day when Secretary of the treasury Janet Yellen visited New Delhi and had talks with finance minister Nirmala Sitharaman.
INDIA – USA Economic relations-
The USA is one of the largest trading partners of Indian goods and services. According to the data of the commerce ministry in 2021- 22 bilateral trade in goods between the two countries crossed $ 119.42 billion. Export to the US increased to $ 76.11 billion in 2021 -22 from $ 51.62 billion in the previous year. While the imports rose to $ 43.31 billion as compared to about $ 29 billion in 2020-21.