Sign In
Learn bits
Economy
Admin

17/12/20 13:52 PM IST

US Puts India Back on Currency Manipulation Watchlist

In news

The US has put India on its “monitoring list” of currency manipulating countries for the third time.

Details
  • This came after the Reserve Bank of India (RBI) made relentless dollar purchase, leading to forex reserves rising by $100 billion this fiscal.
  • Along with India, Taiwan, Thailand Vietnam and Switzerland were also branded as currency manipulators.
  • India had been removed from the watch list last year.
The U.S. Treasury uses three benchmarks to judge currency manipulators
  • A bilateral trade surplus with the U.S. of more than $20 billion.
  • A current account surplus of at least 3% of GDP.
  • Net purchases of foreign currency of 2% of GDP over a 12-month period.
Why India has been included in the list?
  • India breached the first and the third benchmarks.
  • On the second, on a four-quarter basis, the country’s current account surplus remained below the threshold level.
  • According to the report, net purchases of foreign currency added up to 2.4% of GDP.
Source: The Hindu

More Related Current Affairs View All

15 Jan

Meta shutting down fact-checkers

'Meta CEO Mark Zuckerberg said the company will get rid of fact-checkers and simplify content policies by removing restrictions on topics as it is “out of touch with mainstre

Read More

15 Jan

Mission Mausam

'Prime Minister Narendra Modi launched  ‘Mission Mausam’, a groundbreaking initiative aimed at making India a weather-ready and climate-smart nation, as part of th

Read More

15 Jan

Mahakumbh First Amrit Snan

'January 14 was the first amrit snan or shahi snan at the Mahakumbh underway in Prayagraj.' Shri Panchayati Akhara Mahanirvani and Shri Shambhu Panchayati Atal Akhara were the f

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps