US puts India on currency manipulator watchlist
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Last Updated: Apr 20, 2021, 07:33 AM IST
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This is the second time since the start of the pandemic that India has figured on the list, even as the Reserve Bank of India has purchased large quantities of dollars on account of huge capital inflows.
Buying excessive dollars tends to suppress the real value of the currency.
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Mumbai: The US treasury department has placed India on a watchlist of currency manipulators, citing the central bank’s dollar purchase that it said at 5% of the GDP exceeded the 2% threshold, and India’s large trade surplus with the US.
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