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Why in the News?
Recently, the United States Department of Treasury has taken off India’s name from its Currency Monitoring List of major trading partners.
Key Points:
About
Currency Monitoring List
- It monitors the currency policies of the US’ major trade partner countries.
- If a country appears on this list, it is regarded as a “currency manipulator”.
Why do Countries manipulate their currency?
- If a country artificially lowers the value of its currency, it gives an advantage over others in the trade.
- As a lower currency value leads to reduced export costs from that country.
Removal of India from the list – What does it mean?
- RBI can take measures to manage the exchange rates effectively, without being tagged as a currency manipulator.
- From a market standpoint, it signifies the growing role of India in global growth.
News Source: The Indian Express
