CURRENT AFFAIRS

Detailed explanation-1: -As per the report of the USTD, India and Singapore have intervened in the foreign market in an ‘unsymmetric and sustained manner with an effect of weakening their currency”.

Detailed explanation-2: -China has a policy of pegging its currency (the yuan) to the U.S. dollar. If the yuan is undervalued against the dollar, there are likely to be both benefits and costs to the U.S. economy. It would mean that imported Chinese goods are cheaper than they would be if the yuan were market determined.

Detailed explanation-3: -Apart from India, the other countries mentioned in the Currency Manipulation are China, Korea, Japan, Germany, Ireland, Italy, Thailand, Singapore, and Mexico.

Detailed explanation-4: -Currency manipulation happens when one of our trading partners buys up U. S. assets such as treasury notes and bonds, which make the value of the dollar artificially high. By making the dollar more expensive, it makes our exports more expensive and makes the foreign countries’ products cheaper.

Detailed explanation-5: -China directly affects the U.S. dollar by loosely pegging the value of its currency, the renminbi, to the dollar. China’s central bank uses a modified version of a traditional fixed exchange rate that differs from the floating exchange rate the United States and many other countries use.