USA puts India on watch list over currency practices

US Places 6 Nations With Large Trade Surpluses on Currency Watch List - Treasury

US Places 6 Nations With Large Trade Surpluses on Currency Watch List - Treasury

"Treasury found that six major trading partners warrant placement on the "Monitoring List" of major trading partners that merit close attention to their currency practices", a press release summarizing the report stated on Friday.

"Treasury found that six major trading partners warrant placement on the "Monitoring List" of major trading partners that merit close attention to their currency practices, including five that continue on the list, China, Germany, Japan, Korea, and Switzerland, and India that has been added to the Monitoring List in this Report", the department stated in the semiannual report submitted before the Congress on macroeconomic and foreign exchange policies of major trading partners of the United States.

Earlier, the department had five countries on this list - China, Germany, Japan, Korea, and Switzerland - under this list. According to the report, the countries would remain on the list for at least two report cycles, in what seems to be a measure to help ensure that any improvement in performance versus the criteria is durable. The US has a deficit of $337 billion with China of a total global trade deficit of $566 billion, according to government data.

As per the report, India, which has a USD23 billion trade surplus with the USA, increased its purchases of foreign exchange over the first three quarters of 2017, even as the rupee gained traction in terms of value. The Congress requires the treasury report to spot countries which are attempting to "artificially managing" the value of their currency to gain a trade advantage, by keeping exchange rate low to promote cheaper exports.

It's the first time for the Treasury Department to put India on the list, due to extensive intervention in its currency markets.

"We will continue to monitor and combat unfair currency practices while encouraging policies and reforms to address large trade imbalances", US Treasury Secretary Steven Mnuchin said.

Referring to China's massive goods trade surplus with the United States, the department said Washington is "strongly concerned" by the lack of progress by Beijing in correcting the bilateral trade imbalance.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.