India-The Currency Manipulator
The US Treasury Department’s report released on 16th April said 11 economies warrant placement
on the “Monitoring List” of major trading partners – China, Japan, South Korea, Germany, Ireland,
Italy, India, Malaysia, Singapore, Thailand, and Mexico.
In spite of being a strategic ally of the United States in the Asia Pacific, India has found itself in the
US Treasury Department’s (USDT) Currency Manipulator watch list for a second time in a row. India
was added to the list in December 2018 and was removed in 2019 but got mentioned again in the
list in December 2020.
Meaning
• Currency Manipulator is a designation given by United States government authorities to countries
that engage in ‘unfair currency practices’ which results in a trade advantage to that country.
•Such practices might include currency intervention or a monetary policy wherein a central
government of a country buys or sells foreign currency in exchange for domestic currency, generally
with an intention to influence the exchange rate and commercial policy.
