The US Treasury Department adds India to the watch list of currency manipulators. Now India allows the exchange rate to be shifted to reflect the economic fundamental. India is allowed by the US to monitor exchange rates. The Treasury Department of the US has allowed India in the watch list which is branded as a currency manipulator.
America’s major trading partner
The major trading partners of the US are Vietnam, Switzerland, India, Singapore.
India meets its criteria for currency manipulators
According to the report, India met two criteria according to American norms. The Treasury will monitor and evaluate the economic trends and foreign exchange policies of each of these economies.
The authorities should allow the exchange rate to reflect economic fundamentals and limit foreign exchange intervention in the circumstances of the market’s latest conditions.
India can also take advantage of the recovery period to pursue structural reforms that will open up further markets for trade and foreign investment such as – foreign portfolios, investment in Indian sovereign bonds which is developing long term.
The rupee has been praised according to the RBI, but it has not been found that the peers lost in emerging markets have US treasuries.
Praise to India
The RBI said that the value of the Indian rupee has been broadly determined with intervention to curb vitality in the exchange rate.
India is moving ahead in global decisions. This is a great opportunity for India that they are going to monitor countries as currency manipulations. This is a major achievement for India as it is now included in the list of currency manipulators.
India is also one of the four major trading partners of the US. It will fully manage and evaluate the economic policies and foreign exchange policies of each country. It is also helpful for the long-term development of these countries.