World

India joins China in the US Treasury's List of Nations with Questionable Forex Policies

India joins China in the US Treasury's List of Nations with Questionable Forex Policies

The US Treasury announced a report that includes the list of countries which potentially have questionable foreign exchange policies. India joins China and four other countries on this list.

Treasury said the "monitoring list" includes those "major trading partners that merit close attention to their currency practices." In addition to India, the semi-annual report to Congress names five countries that continue on the list from October: China, Germany, Japan, Korea and Switzerland.

The list is based on criteria set by the Treasury, which none of its major trade partners have fulfilled. Five countries on the list, however, meet two out of the three criteria.

As per the report, China was added because "it constitutes a disproportionate share of the overall US trade deficit," as per the report.

According to government data, US has a $337 billion trade deficit out of the total $566 billion globally.

India it says, "increased its purchases of foreign exchange over the first three quarters of 2017," while the rupee value was still on the rise. India has a $23 billion trade surplus with the US. In a statement, US Treasury Secretary Steven Mnuchin said, "We will continue to monitor and combat unfair currency practices while encouraging policies and reforms to address large trade imbalances."