America removed India’s name from the currency monitoring list, know why China was shocked:
Currency Monitoring list: The US prepares this list to monitor the currency of its major partners. India was on the US currency watch list for the last two years. Let us tell you that the US keeps those countries on the watch list, whose foreign exchange rate it suspects.
New Delhi: The US Treasury Department has removed India along with Italy, Mexico, Thailand, and Vietnam from the currency monitoring list of major trading partners. India was on this list for the last two years. Under this arrangement, currency movements and macroeconomic policies of major trading partners are closely monitored. US Finance Minister Janet Yellen held a meeting with Finance Minister Nirmala Sitharaman on Friday ahead of her visit to India. On this day the US Treasury Department has taken this step.
These countries are on currency watch list China, Japan, South Korea, Germany, Malaysia, Singapore, and Taiwan are the seven countries on the current watch list, the Finance Department said in its half-yearly report to Parliament. The report said that the countries that have been removed from the list have fulfilled only one of the three criteria in two consecutive reports.
Big blow to china:
the report said that China is under the close watch of the Finance Department for its failure to publish its foreign exchange interference and the lack of transparency in its exchange rate mechanism. Significantly, the US keeps those countries on the watch list, whose foreign exchange rate it suspects.
What is Currency Watch List?
India was on the US currency watch list for the last two years. The US prepares this list to monitor the currency of its major partners. Under this arrangement, currency movements and macroeconomic policies of major trading partners are closely monitored. Those countries are kept on the watch list, whose foreign exchange rate is suspicious. Treasury Secretary Yellen said the global economy was already dealing with supply and demand imbalances caused by Russia’s war against Ukraine and COVID-19 before that. Both of these factors have led to an increase in the prices of food, fertilizers, and energy. This has led to rising global inflation and food insecurity.
