On Friday, November 11, 2022, the US Department of Treasury withdrew India and four other nations from the Currency Monitoring List. The key trading partners on the watch list are those who need rigorous scrutiny of their macroeconomic and monetary policies. Italy, Mexico, Thailand, and Vietnam were the other nations that were taken off the list in addition to India. When US Treasury Secretary Janet Yellen visited New Delhi and met with India’s Finance Minister Nirmala Sitharaman, the US Department of Treasury took this action.
China, Japan, Korea, Germany, Malaysia, Singapore, and Taiwan are currently the seven economies that have stayed on the list and are a part of the current ranking.Regarding the grounds for removal, the official department’s report indicates that the nations that have been struck off the list have consistently only met one of the three requirements. It is significant that Switzerland has once more surpassed the thresholds for all three criteria, which is necessary to qualify as a Currency Manipulator. The Treasury Department insisted that there is not enough evidence to label Switzerland as such, despite the Report’s omission of the phrase.The Treasury will continue its enhanced bilateral communication with Switzerland, which began in early 2021, to discuss the nation’s policy options for addressing the underlying causes of its external imbalances, according to a media report. For this research, Treasury looked at and evaluated around 80% of US overseas trade in goods and services over the four quarters leading up to June 2022.Major economies are likely to pursue diverse strategies in response to various challenges, which can be seen in currency movements. The Treasury is aware that various responses to the global economic headwinds by developing and emerging nations may be justified in particular situations.Comment your thoughts below.
