The Report On Macroeconomic And Foreign Exchange Policies Of Major Trading Partners Of The United States:
The U.S. Treasury has released the report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. The April 2021 edition of the semi-annual report is the first from the Biden administration.
- The report is submitted to the U.S. Congress and reviews currency practices of the U.S.’s 20 biggest trading partners.
- Three criteria are used to review partners:
- A significant (at least $20 billion) bilateral trade surplus.
- A material current account surplus.
- Persistent one-sided intervention in forex markets.
Highlights of the latest report:
- India is one of the 11 countries on the ‘Monitoring List’ with regard to their currency practices.
- India was on the list in the December 2020 report as well.
- The other 10 countries on the list with India are China, Japan, Korea, Germany, Ireland, Italy, Malaysia, Singapore, Thailand, and Mexico.
- India met two of the three criteria — the trade surplus criterion and the “persistent, one-sided intervention” criterion.