CURRENT AFFAIRS

Detailed explanation-1: -The U.S. Treasury uses three criteria to decide whether to apply the designation of currency manipulator to countries. They must be or have: Actively intervening in their currency markets. Large trade surpluses with the U.S.

Detailed explanation-2: -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.

Detailed explanation-3: -Currency manipulation is one way countries can shift patterns of trade in their favor. By buying foreign currency in the market, a country can artificially change the price of its imports and its exports.

Detailed explanation-4: -In December 2020, the United States Treasury Department placed India under its Currency Manipulation Watchlist after a year it was taken off that same list. Other countries include Switzerland, Japan, Germany etc.

Detailed explanation-5: -The United States and many other developed countries let the market determine the value of their currencies, and typically influence that value only indirectly. For example, when the Federal Reserve raises or lowers interest rates, it can strengthen or weaken the dollar.