×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 18 April, 2021

  • 3 Min Read

India on US’s Currency Watch list

India on US’s Currency Watch list

The US treasury places India along with 10 other countries on its currency watch list.

What is Currency Manipulator:

  • Current Manipulators are countries engaging in “unfair currency practices” by deliberately devaluing their currency against the dollar.
  • The practice would mean that the country in question is artificially lowering the value of its currency. By that, it aims to gain an unfair advantage over others.
  • This is because the devaluation would reduce the cost of exports from that country. Thus, more exports will result in a reduction in trade deficits.

Criteria: the US places a country on Currency Watch List if it is meeting any two of the below three criteria. This includes:

  • A “significant” bilateral trade surplus with the US — at least USD 20 billion over a 12-month period.
  • A current account surplus is equivalent to at least 2% of gross domestic product (GDP) over a 12-month period.
  • “Persistent”, one-sided intervention — when net purchases of foreign currency total at least 2% of the country’s GDP over a 12-month period. Further, it is conducted repeatedly, in at least six out of 12 months.

Impact: The designation of a country as a currency manipulator does not immediately attract any penalties. However, it lowers the confidence in a country in the global financial markets.

Why was India included in the Currency watch list?

  • India has met two of the three criteria — the trade surplus criterion and the “persistent, one-sided intervention” criterion.
  • Further, the other 10 countries on the list with India are China, Japan, Korea, Germany, Ireland, Italy, Malaysia, Singapore, Thailand, and Mexico. All of these, except Ireland and Mexico were on the December 2020 list.

Source: TH


Formation Day

On 1st November, eight Indian states—Andhra Pradesh, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, and Tamil Nadu—along with five Union Territories—Andaman and Nicobar Islands, Chandigarh, Delhi, Lakshadweep, and Puducherry—celebrate their Formation Day. This date marks an important milestone in India

Turtle (Kachhua) Wildlife Sanctuary

The Turtle Wildlife Sanctuary, also known as the Kachhua Sanctuary, is located in the Varanasi district of Uttar Pradesh. It is recognised as India’s first freshwater turtle wildlife sanctuary, established to conserve endangered turtle species and support the ecological health of the Ganga River. Location and Extent The sanctuary co

Introduction of AI and Computational Thinking (CT) in

The Ministry of Education plans to introduce Artificial Intelligence (AI) and Computational Thinking (CT) from Class 3 onwards in the 2026–27 academic year. This initiative is part of the National Curriculum Framework for School Education (NCF-SE) 2023 and aligns with the National Education Policy (NEP) 2020. The aim is to prepare student

Sal Tree

Scientists from the Environment Department of Himachal Pradesh University (HPU) in Shimla have recently revealed that the Sal tree (Shorea robusta) is the most effective natural air purifier for combating rising pollution levels. Their findings highlight the tree’s superior capacity to trap dust, absorb gases, and cleanse the air compared

US Resumes Nuclear Weapon Testing

The President of the United States has ordered the resumption of nuclear weapon testing after a gap of 33 years, the last test being in 1992. This decision marks a significant shift in global nuclear policy and has far-reaching implications for geopolitics, the environment, and international security. Status of Global Nuclear Weapon Testing

DNA

03 Dec,2025

Toppers

Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW Prelims Answer Key 2024