{"id":3333,"date":"2019-05-31T22:50:34","date_gmt":"2019-05-31T17:20:34","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=3333"},"modified":"2019-05-31T22:50:34","modified_gmt":"2019-05-31T17:20:34","slug":"explained-why-us-has-removed-india-from-its-currency-monitoring-watchlist","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/explained-why-us-has-removed-india-from-its-currency-monitoring-watchlist\/","title":{"rendered":"Explained: Why US has removed India from its currency monitoring watchlist"},"content":{"rendered":"<p><strong>Relevant for prelims and GS paper 3:-<\/strong><\/p>\n<div class=\"o-story-content__main a-wysiwyg\">\n<p>The Donald Trump administration has removed India from its currency monitoring watchlist. In its semi-annual foreign-exchange report to the US Congress, the Treasury Department did not mention India\u2019s name in its watchlist of countries with potentially \u201cquestionable\u201d foreign exchange policies and currency \u201cmanipulation\u201d.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >What's Inside this Blog!<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/triumphias.com\/blog\/explained-why-us-has-removed-india-from-its-currency-monitoring-watchlist\/#Countries_in_the_list\" title=\"Countries in the list\">Countries in the list<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/triumphias.com\/blog\/explained-why-us-has-removed-india-from-its-currency-monitoring-watchlist\/#The_criterion\" title=\"The criterion\">The criterion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/triumphias.com\/blog\/explained-why-us-has-removed-india-from-its-currency-monitoring-watchlist\/#Why_is_this_significant\" title=\"Why is this significant?\">Why is this significant?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Countries_in_the_list\"><\/span>Countries in the list<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India, alongside China, Japan, Germany, Switzerland and South Korea, was placed in the bi-annual currency watch list in October last year. While India and Switzerland have not been mentioned in the latest list, the US has added Ireland, Italy, Malaysia, Singapore and Vietnam to the list, with China continuing to figure in it. While the designation of a country as a currency manipulator does not immediately attract any penalties, it tends to dent the confidence about a country in the global financial markets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_criterion\"><\/span>The criterion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Countries with a current-account surplus equivalent to 2 per cent of gross-domestic product are eligible for the list, according to modifications made in the new list, down from 3 per cent earlier. Other thresholds include repeated intervention in the currency markets and a trade surplus with the US of at least $20 billion<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_this_significant\"><\/span>Why is this significant?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tweaks in currency policy has been used by the Trump administration to browbeat countries that, from Washington\u2019s perspective, have hurt American businesses and consumers. For India, this comes amid the ongoing trade spat between Washington and New Delhi. Trump has repeatedly claimed that India is a \u201ctariff king\u201d and imposes \u201ctremendously high\u201d tariffs on American products, while also dismissing as \u201cinadequate\u201d the Indian government\u2019s decision to halve the import tariff on Harley-Davidson motorcycles from 100% to 50% last year, even as he has maintained that his administration is \u201cfixing broken trade deals\u201d to protect American workers.<\/p>\n<div id=\"gpt_ad_IE_ROS_OOP_INNOV2\" data-google-query-id=\"CN-o1aijxuICFUuajgodM78Gaw\">\n<div id=\"google_ads_iframe_\/1050432\/www.indianexpress.com\/IE_ROS_OTH_AS_OOP_INNOV2_0__container__\"><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Relevant for prelims and GS paper 3:- The Donald Trump administration has removed India from its currency monitoring watchlist. In<\/p>\n","protected":false},"author":1,"featured_media":3179,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[136,291,817,413,392],"class_list":["post-3333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-miscellaneous","tag-current-affairs","tag-daily-current-affairs","tag-gs","tag-ias","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/3333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=3333"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/3333\/revisions"}],"predecessor-version":[{"id":3334,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/3333\/revisions\/3334"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3179"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=3333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=3333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=3333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}