The Trump administration removed India from its currency monitoring list of major trading partners, citing certain developments and steps being taken by New Delhi which address some of its major concerns. The Treasury Department said in its latest semi-annual report on macroeconomic and foreign exchange policies of major trading partners of the US, said that “India has been removed from the monitoring list, having met only one out of three criteria – a significant bilateral surplus with the US – for two consecutive reports,” . It said that after purchasing foreign exchange on net in 2017, the central bank steadily sold reserves for most of 2018, with net sales of foreign exchange reaching 1.7 per cent of GDP over the year.
The report said that India maintains ample reserves according to the IMF metrics for reserve adequacy.
Switzerland is the other nation that has been removed by the US from its currency monitoring list. India for the first time was placed by the US in its currency monitoring list of countries in May 2018.
0 Comments