US adds India to " Currency Manipulators " watchlist. // What is Currency Manipulation?

USA also added Thailand and Taiwan along with India while Switzerland and Vietnam labelled as Currency Manipulators.

What Is Currency Manipulation ?

It occurs when a central bank of any country keeps buying Dollars to create scarcity of dollars which causes weakening of local currency to boost the country's exports. 

For example, last year USA labelled China as a currency manipulator since China was enjoying a great trade surplus in trade with USA.

Criteria For A Currency Manipulator :--

* at least have $20 billion plus bilateral trade surplus with the USA

* foreign currency intervention as well as a global current account surplus exceeding 2 % of GDP.

* when net purchases of foreign currency totalling at least 2 % of the country's GDP.

If all 3 conditions are met then the country is labelled as Currency Manipulator .

If 2 are met then it is kept on the watchlist.