May 30, 2019

The Trump administration in US has removed India and Switzerland from its currency monitoring list of major trading partners.


  • Background: India for the first time was placed by the US in its currency monitoring list of countries with potentially questionable foreign exchange policies in May 2018 along with five other countries - China, Germany, Japan, South Korea and Switzerland.

  • Criteria for inclusion: The US includes major trading partners in its monitoring list if they meet at least two of three criteria –
    • if it has either a significant bilateral trade surplus with the US,

    • if it has a material current account surplus or

    • if it is engaged in “persistent one-sided intervention” in the foreign exchange market.

  • Recent decision:
    • India and Switzerland have been removed from the monitoring list in the latest semi-annual report on macroeconomic and foreign exchange policies of major trading partners of the US.

    • The list now includes other countries like China, Japan and Germany.

  • Reasons for removal:
    • The Trump administration cited certain developments and steps being taken by India which address some of its major concerns.

    • In both Switzerland and India, there was a notable decline in 2018 in the scale and frequency of foreign exchange purchases.