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India removed from US’s Currency Watchlist.

In a recent announcement by United States, it has removed India and Switzerland from the currency monitoring lists. The US has retained other countries like China, Japan and Germany in the list. Key Highlights Background: It was in May 2018 when for the first time India was placed by US in its currrency monitoring list of countries with potentially questionable foreign exchange policies, and because India had a bilateral trade surplus with US, which crossed country’s maximum limit of $20 billion. Other five other countries along with India included Japan, China, Switzerland, Germany and South Korea. Objective: The list basically consists of major trading partners of US who are to be closely monitored for potentially questionable foreign exchange policies. The move is taken amid escalating trade tensions between the two countries. About: In the latest semi-annual report on macroeconomic and foreign exchange (Forex) policies of major trading partners of the US, the country has removed India and Switzerland from the monitoring list. The list now includes other countries like Italy, Japan, Singapore, China, Malaysia, Ireland, Vietnam, Germany and Korea. Reasons: US President Donald Trump’s administration cited reason for removal that India has taken certain steps and developments which address some of its major concerns over its currency practices and macroeconomic policies. According to analysis, in year 2018 both India and Switzerland saw a notable decline in the scale and frequency of foreign exchange purchases.