US Treasury removes India from its Currency Monitoring List

The United States Department of Treasury has removed India from its Currency Monitoring List. The move came hours after Treasury Secretary Janet Yellen addressed US-India Businesses and investment opportunities event in New Delhi. India had been on the list for the last two years. Along with India, the United States also removed Italy, Mexico, Thailand and Vietnam from its Currency Monitoring List of major trading partners that merit close attention to their currency practices and macroeconomic policies.
In its biannual report to the Congress, the Department of Treasury said China, Japan, Korea, Germany, Malaysia, Singapore, and Taiwan are the seven economies that are a part of the current monitoring list. The countries that have been removed from the list have met only one out of three criteria for two consecutive reports. In this report, Treasury reviewed and assessed the policies of major US trading partners, comprising roughly 80 per cent of US foreign trade in goods and services, during the four quarters through June 2022.

“The global economy was already dealing with supply and demand imbalances caused by COVID-19 prior to Russia’s illegal war against Ukraine, which has increased food, fertilizer, and energy prices— further elevating global inflation and increasing food insecurity,” said Treasury Secretary Yellen. Major economies facing different stresses may accordingly pursue different policies, which can be reflected in currency movements. The Treasury is cognizant that a range of approaches by developing and emerging economies to global economic headwinds may be warranted in certain circumstances, she said.