CURRENT AFFAIRS

Detailed explanation-1: -The U.S. Treasury Department officially named China a currency manipulator after the Peoples Bank of China devalued the yuan in response to new tariffs that were imposed by the U.S. and set to take effect on Sept. 1, 2019.

Detailed explanation-2: -Apart from India, the other countries mentioned in the Currency Manipulation are China, Korea, Japan, Germany, Ireland, Italy, Thailand, Singapore, and Mexico.

Detailed explanation-3: -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-4: -Recently, the United States (US) placed 11 countries, including India in the Currency Practices Monitoring List (Currency Manipulators Watch List).

Detailed explanation-5: -Taiwan’s exports have been boosted by its key role as a semiconductor producer, with Taiwanese companies’ order books kept full by a global chip shortage that has particularly affected the auto industry. Taiwan was last formally labelled a currency manipulator by the United States in December 1992.