IAS Gyan

Daily News Analysis


14th November, 2022 International Relations

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Context:  India is among the few countries removed from the United States’ Currency Monitoring List, released by the Department of Treasury. In its biannual report to Congress, the US’ Treasury Department announced that it had also removed Italy, Mexico, Vietnam and Thailand from the list.



  • Interestingly, the report was released on the same day Secretary of the Treasury Janet Yellen met Finance Minister Nirmala Sitharaman in New Delhi.  
  • The two leaders vowed to strengthen business-to-business links between India and the US.
  • The ninth India-US economic and financial partnership meeting came just ahead of India assuming G20 Presidency.


What is the US’ Currency Monitoring List?

  • The report reviews the policies of the US’ trading partners during the last four quarters ending in June 2022.
  • The report also includes a review of the Treasury’s ‘Monitoring List’. As its name suggests, the list closely monitors the currency practices and policies of some of the US’ major trade partners.
  • The report states that economies that meet two or three criteria in the 2015 Act are placed on the list.
  • Under this legislation, the Treasury Department has to assess the macroeconomic and exchange rate policies of the US’ trading partners for three specific criteria:
  • A significant bilateral trade surplus with the United States is a goods and services trade surplus that is at least $15 billion
  • A material current account surplus is one that is at least 3% of GDP, or a surplus for which Treasury estimates there is a material current account “gap” using Treasury’s Global Exchange Rate Assessment Framework (GERAF).
  • Persistent, one-sided intervention occurs when net purchases of foreign currency are conducted repeatedly, in at least 8 out of 12 months, and these net purchases total at least 2% of an economy’s GDP over a 12-month period.
  • Once on the list, an economy will remain there for at least two consecutive reports so that the Treasury can assess whether any improvements in performance is durable and not due to temporary factors.


Which countries are on the US’ currency monitoring list?

According to the report, these countries are presently on the list:

  • China
  • Japan
  • Korea
  • Germany
  • Malaysia
  • Singapore
  • Taiwan


Why was India removed from the list?

  • India and four other countries were removed from the Monitoring List as they now only met one of the three criteria for two consecutive reports. India has been on the list for about two years.