‘Currency Manipulators’ Monitoring List
Why in News?
- The U.S. Treasury labelled Switzerland and Vietnam as currency manipulators and added three new names, including India, to a watch list of countries it suspects of taking measures to devalue their currencies against the dollar.
- To be labelled a manipulator by the U.S. Treasury, countries must at least have a $20 billion-plus bilateral trade surplus with the U.S., foreign currency intervention exceeding 2% of gross domestic product and a global current account surplus exceeding 2% of GDP.
- India and Singapore had also intervened in the foreign exchange market in a “sustained, asymmetric manner” but did not meet other requirements to warrant designation as manipulators.