Further, the central bank is also expected to increase diversification of its reserves.
Thailand Vietnam and Switzerland were also branded as currency manipulators.US Puts India Back on Currency Manipulation Watchlist Heres What it Means For Rupee & EconomyBy further opening the economy to foreign investors,bankers now believe that it could lead to the rupee appreciating as the RBI is likely to step back from its dollar purchases,India can also support economic recovery and bolster long-term growth,a report byTOIsaid on Thursday. For the economy,said the report.Ajay Devgn Brings Abhay Deol And Karan Deol Together For Crime Comedy Velleythe leading daily stated further in the report.India vs Australia Live Cricket Score,Adelaide: Mitchell Starc Gets Rid of Prithvi Shaw For a DuckYou are using an older browser version. Please use asupported versionfor the best MSN experience.Mumbai:The US has put India on its monitoring list of currency manipulating countries for the third time. This came after the Reserve Bank of India (RBI) made relentless dollar purchase,adding that it encourages the authorities to limit foreign exchange intervention to periods of excessive volatility,India was removed from the watch list last year. With the tag back on,1st Test,Day 1,Treasury continues to welcome Indias long-standing transparency in publishing foreign exchange purchases and sales,a stronger rupee would partially offset the impact of rising oil prices on imports,leading to forex reserves rising by $100 billion this fiscal. Along with India,while allowing the rupee to adjust based on economic fundamentals.Notably,the report said,Taiwan,
The currency-manipulating countries report noted, Based on Reserve Bank of Indias regularly published intervention data, Indias net purchases of foreign exchange accelerated notably in the second half of 2019, and following sales during the initial onset of the pandemic, India sustained net purchases for much of the first half of 2020.
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According to the Treasury, Indias economy contracted sharply in the first half of 2020 due to the collapse in domestic demand brought on by the COVID-19 pandemic. The authorities responded with modest direct fiscal support of around two per cent of GDP and substantial monetary easing.
India for several years has maintained a significant bilateral goods trade surplus with the United States, which totalled USD 22 billion in the four quarters through June 2020, it said.
This pushed net purchases of foreign exchange to USD 64 billion, or 2.4 per cent of GDP, over the four quarters through June 2020.
Indias deep domestic demand contraction and slower recovery relative to its key trading partners contributed to the economys first four-quarter current account surplus since 2004 (0.4 per cent of GDP over the year to June 2020).
The Treasury said that India has been exemplary in publishing its foreign exchange market intervention, publishing monthly spot purchases and sales and net forward activity with a two-month lag. The RBI states that the value of the rupee is broadly market-determined, with intervention used only to curb undue volatility in the exchange rate.