Unfair charge

India is not using currency to gain unfair advantage

The US treasury department’s latest assessment of currency practices and macroeconomic policies has kept India on the monitoring list along with countries such as China, Japan, and Germany. The department is required to assess whether major trading partners are manipulating their exchange rate to gain unfair competitive advantage and preventing effective balance of payments adjustment. It considers three criteria in this context: A bilateral trade surplus with the US in excess of $20 billion over a 12-month period; a current account surplus in excess of 2 per cent of gross domestic product (GDP) over a 12-month period; and persistent one-sided