India among 12 economies on currency Monitoring List' of US treasury

 India on Friday 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.

Explaining its decision to keep India on the list: Explaining its decision to keep India on the list, the Treasury said that India met two of the three criteria in the December 2021 and the April 2021

India met only the significant bilateral trade surplus threshold in the Report, the Treasury said, adding that India will remain on the Monitoring List until it meets fewer than two criteria for two consecutive Reports.

RBI foreign exchange purchases in recent years have resulted in an elevated level of reserves. As of December 2021, foreign exchange reserves totalled USD 570 billion, equivalent to 18 per cent of GDP and 209 per cent of short-term external debt at remaining maturity

In the 2021 External Sector Report, the IMF judged that India's reserves at the time stood at 197 per cent of the IMF's reserve adequacy metric as of end-2020.

Rupee volatility was pronounced during the first half of 2021 as the economy contended with the large, second COVID-19 outbreak; subsequently, the rupee depreciated steadily against the dollar during most of the second half of the year, it said. By contrast, the rupee held up relatively well compared to the currencies of many India's regional trading partners