{"id":102107,"date":"2021-04-17T16:53:11","date_gmt":"2021-04-17T11:23:11","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=102107"},"modified":"2021-04-17T18:19:39","modified_gmt":"2021-04-17T12:49:39","slug":"india-on-uss-currency-watch-list","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-on-uss-currency-watch-list\/","title":{"rendered":"India on US&#8217;s &#8220;Currency Watch list&#8221;"},"content":{"rendered":"\n<h5><strong>What is the News?<\/strong><\/h5>\n<p><strong>\u00a0<\/strong>The US treasury places India along with 10 other countries on its currency watch list.<\/p>\n<h5><strong>What is Currency Manipulator:<\/strong><\/h5>\n<ul>\n<li><strong>Current Manipulators <\/strong>are countries engaging in \u201cunfair currency practices\u201d by deliberately devaluing their currency against the dollar.<\/li>\n<li>The practice would mean that the country in question is artificially lowering the value of its currency. By that, it aims to gain an unfair advantage over others.<\/li>\n<li>This is because the devaluation would reduce the cost of exports from that country. Thus, more exports will result in a reduction in trade deficits.<\/li>\n<\/ul>\n<p><strong>Criteria: <\/strong>US places a country on Currency Watch List if it is meeting any two of the below three criteria. This includes:<\/p>\n<ul>\n<li><strong>A \u201csignificant\u201d bilateral trade surplus with the US<\/strong> \u2014 at least USD 20 billion over a 12-month period.<\/li>\n<li><strong>A current account surplus equivalent <\/strong>to at least 2% of gross domestic product (GDP) over a 12-month period.<\/li>\n<li><strong>\u201cPersistent\u201d, one-sided intervention <\/strong>\u2014 when net purchases of foreign currency totals at least 2% of the country\u2019s GDP over a 12-month period. Further, it is conducted repeatedly, in at least six out of 12 months.<\/li>\n<\/ul>\n<p><strong>Impact:<\/strong> The designation of a country as a currency manipulator does not immediately attract any penalties. However, it lowers the confidence about a country in the global financial markets.<\/p>\n<h5><strong>Why was India included in the Currency watch list?<\/strong><\/h5>\n<ul>\n<li><strong>India has met two of the three criteria <\/strong>\u2014 the trade surplus criterion and the \u201cpersistent, one-sided intervention\u201d criterion.<\/li>\n<li><strong>Further<\/strong>, the other 10 countries on the list with India are China, Japan, Korea, Germany, Ireland, Italy, Malaysia, Singapore, Thailand, and Mexico. All of these, except Ireland and Mexico were on the December 2020 list.<\/li>\n<\/ul>\n<p><strong>Source: <\/strong><a href=\"https:\/\/epaper.thehindu.com\/Home\/MShareArticle?OrgId=GJJ8G6H4A.1&amp;imageview=0\"><strong>The Hindu<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the News? \u00a0The US treasury places India along with 10 other countries on its currency watch list. What is Currency Manipulator: Current Manipulators are countries engaging in \u201cunfair currency practices\u201d by deliberately devaluing their currency against the dollar. The practice would mean that the country in question is artificially lowering the value of&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-on-uss-currency-watch-list\/\">Continue reading <span class=\"screen-reader-text\">India on US&#8217;s &#8220;Currency Watch list&#8221;<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,164,9],"tags":[1278,1333],"class_list":["post-102107","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-international-relations-daily-factly-articles","category-public","tag-eco_4","tag-ir_0","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700774960,"cached_date":1704767265},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/102107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=102107"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/102107\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=102107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=102107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=102107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}