WORLD NEWS SUPERFAST
USA NEWS – According to information received by World News Superfast, the US has put India, Taiwan and Thailand on the monitoring list of currency manipulator countries. This list includes 6 more countries including China, Germany, Italy. India has been added to this list once again after one and a half years.
What does a currency manipulator mean?
There is a label provided by the US Government Treasury Department. According to information received by World News Superfast, when the US feels that a country is involved in unfair currency practice and it reduces the value of the US dollar, it is used for that country.
That is to say, when a country intentionally reduces the value of its currency in one way or the other, it benefits from the currency of other countries. De-value of foreign currency reduces the export cost of that country.
This time there are 8 countries in the US currency manipulator monitoring list.
For this, the US has set three parameters. According to the information received by World News Superfast, out of these three countries, on which the two parameters apply, the US puts it in its monitoring list. And the countries to which the three parameters are applied declare a currency manipulator. This time there are 8 countries in the US currency manipulator monitoring list, while the US has declared two countries as currency manipulators.
What are the parameters for currency manipulator?
The bilateral trade surplus of that country from the US to be more than $ 20 billion during 12 months. Current account surplus to be at least 2% of the country’s GDP within a year. 2% of GDP of foreign exchange net purchases at least 6 times in 12 months.
What difference does this list make?
The country which is put in this list, at that time does not matter much. But, in the global financial market, sentiment about that country can be negative.
Why was India put again in this list?
The US excluded India from this list in May 2019. At that time, two of the three parameters set by the US did not apply to India. At that time, India’s bilateral trade surplus was more than $ 20 billion.
This time also the bilateral trade of India is more than $ 20 billion in the review of the US Trade Department. It was $ 22 billion in the first four quarters until June 2020. At the same time, India’s foreign exchange net purchases stood at $ 64 billion, which is 2.4% of GDP. 10 of the last 12 months have been when India’s foreign exchange net purchases exceeded 2% of GDP.
Due to these two parameters, India is once again in the US currency manipulator monitoring list.
Apart from India, which other countries are in this list?
According to the information received by the World News Superfast, the latest report of the US Department of Treasury Office of International Affairs has included Taiwan and Thailand along with India in this list. Apart from this, China, Japan, South Korea, Germany, Italy, Singapore and Malaysia are also in this list. These countries were already in this list. The US added India to this list in October 2018. He was left out of this list in May 2019. After one and a half years, India has been put in this list once again.
The United States has declared Vietnam and Switzerland as currency manipulators. These two countries apply the three parameters set by the US.
How will any country come out of this list?
A country that once gets on the monitoring list has to stay out of it at least twice in a row. Only then does America exclude him from this list. According to information received by the World News Superfast, according to the US Treasury Department, this is done so that it can be decided that the reforms that are taking place in its economy are not tampery.