WASHINGTON – The Trump administration on Tuesday removed India from itscurrency monitoring list of major trading partners, citing certaindevelopments and steps being taken by New Delhi which address some of itsmajor concerns.
Switzerland is the other nation that has been removed by the US from itscurrency monitoring list which among others include China, Japan, SouthKorea, Germany, Italy, Ireland, Singapore, Malaysia and Vietnam.
India has been removed from the monitoring list in this report, having metonly one out of three criteria a significant bilateral surplus with the USfor two consecutive reports, the Treasury Department said in its latestsemi-annual report on macroeconomic and foreign exchange policies of majortrading partners of the US sent to the Congress.
After purchasing foreign exchange on net in 2017, the central bank steadilysold reserves for most of 2018, with net sales of foreign exchange reaching1.7 per cent of GDP over the year, it said.
India maintains ample reserves according to the IMF metrics for reserveadequacy, it said.
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In both Switzerland and India, there was a notable decline in 2018 in thescale and frequency of foreign exchange purchases, the report said.
Neither Switzerland nor India met the criteria for having engaged inpersistent, one-sided intervention in either the October 2018 report orthis report.
Both Switzerland and India have been removed from the monitoring list, theTreasury said in its report running into over 40 pages.
