Currency policing should be done by IMF not US:RBI governor Shaktikanta Das

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  1. The Reserve Bank of India governor has said that the International Monetary Fund(IMF) should not allow the U.S to bilaterally label countries as currency manipulators.
  2. He questioned the US bi-annual report calling out emerging markets for currency manipulation.He said that such labelling should not be a bilateral prerogative when multilateral institutions like the IMF exist.
  3. The governor also questioned the IMF role in currency surveillance stating it chose to ignore the times when a currency comes under pressure but was intolerant of countries resisting currency appreciation.
  4. India was first included in the US watch list in 2017 after the RBI bought $52 billion worth of foreign exchange representing 1.8% of the country‚Äôs GDP to boost its forex reserves. 
  5. However,the US treasury department had said that there was a notable decline in 2018 in the scale and frequency of foreign exchange purchases by India and removed India from the monitoring list.