GS Paper - 3 (Economy)

India remained on the US treasury department's currency Monitoring List of major trading partners as Washington placed India along with 11 other major economies that merit close attention to their currency practices and macroeconomic policies.


  1. The countries are China, Japan, South Korea, Germany, Italy, India, Malaysia, Singapore, Thailand, Taiwan, Vietnam and Mexico.
  2. All except Taiwan and Vietnam (which were subject to enhanced engagement) were on the Monitoring List in the December 2021 Report.
  3. The Administration continues to strongly advocate for our major trading partners to carefully calibrate policy tools to support a strong and sustainable global recovery.
  4. India met only the significant bilateral trade surplus threshold in this Report, the Treasury said, adding that India will remain on the Monitoring List until it meets fewer than two criteria for two consecutive Reports.
  5. RBI foreign exchange purchases in recent years have resulted in an elevated level of reserves.
  6. The Indian authorities, it said, should allow the exchange rate to move flexibly to reflect economic fundamentals, limit foreign exchange intervention to circumstances of disorderly market conditions, and refrain from further significant reserve accumulation.
  7. As the economic recovery progresses, the authorities should continue to pursue structural reforms that can help lift productivity and living standards, while supporting an inclusive and green recovery.