The Trump administration on Tuesday omitted the name of India from its currency monitoring list of major trading partners, citing certain developments and steps being taken by New Delhi which address some of its major concerns.
India for the first time was placed by the US in its currency monitoring list of countries with potentially questionable foreign exchange policies in May 2018 along with five other countries.
Beside India, Switzerland is the other nation that has been removed by the US from its currency monitoring list which among others include China, Japan, South Korea, Germany, Italy, Ireland, Singapore, Malaysia and Vietnam.
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As per Treasury Department of United States, “India has been removed from the monitoring list in this report, having met only one out of three criteria – a significant bilateral surplus with the US – for two consecutive reports.”
After buying foreign exchange on net in 2017, the central bank gradually sold reserves for most of 2018, with net sales of foreign exchange reaching 1.7 per cent of GDP over the year.
The report said, in both Switzerland and India, there was a decline in 2018 in the scale and frequency of foreign exchange purchases.
The Treasury department said in its report, “Neither Switzerland nor India met the criteria for having engaged in persistent, one-sided intervention in either the October 2018 report or this report. Both Switzerland and India have been removed from the monitoring list.”