The United States Treasury Department has eliminated India from its currency monitoring list of major trading partners. However, it retained China on its monitoring list, while urges India to take mandatory steps to avoid a “persistently weak currency”.
In the semi-annual report to the United States Congress on International Economic and Exchange Rate Policies, the US Treasury Department has removed Switzerland and India from the watch list of nations with potentially asked foreign exchange policies.
India, along with Japan, China, Switzerland, Germany, and South Korea were position in the bi-annual currency monitoring list in October 2018.
The US Treasury Secretary Steven Mnuchin said that “Treasury continues to urge China to take the necessary steps to avoid a persistently weak currency.”
Mr. Mnuchin claims that China’s Renminbi had fallen against the US Dollar by 8 percent over the last year. He further noted that trade surplus in China with the United States has also widened.
“China’s goods trade surplus with US stands at $419 billion over the four quarters through December 2018,” reads the report.
Besides China, the monitoring list also included South Korea, Japan, Ireland, Germany, Malaysia, Italy, Singapore, and Vietnam, claims the latest report of the US Treasury Department.
Mr. Mnuchin said, “Treasury found that nine major trading partners continue to warrant placement on Treasury’s Monitoring List of major trading partners that merit close attention to their currency practices.”
However, in the report, the US Treasury Department has declined to designate China or any other trading partner as a currency manipulator.
“No trading partner was found to have met the 1988 legislative standards during the current reporting period,” concluded the report.