The Swiss National Bank (SNB) issued a clear denial on Friday that it engages in any manipulation of the Swiss franc, while acknowledging the U.S. Treasury’s updated report on the foreign exchange and macroeconomic policies of major trading partners.
The U.S. Treasury said it was strengthening its scrutiny of how countries manage their currencies, explicitly including interventions meant to resist both depreciation and appreciation against the U.S. dollar. However, Washington did not label any major trading partners as engaging in currency manipulation in its latest report.
Switzerland remained on a U.S. monitoring list of 10 countries whose foreign exchange practices the Treasury said merited close attention. In response, the SNB emphasised in its statement: "The SNB does not engage in any manipulation of the Swiss franc." It added: "It neither seeks to prevent balance of payments adjustments nor to gain unfair competitive advantages for the Swiss economy."
The central bank said it stays in contact with U.S. authorities to explain Switzerland’s economic situation and its monetary-policy choices, and that it welcomes continued discussions within the framework of macroeconomic dialogue.
The SNB also pointed to a joint foreign-exchange statement agreed in September among the central bank, the Swiss finance department and the U.S. Treasury. That earlier statement, the SNB said, recognised that foreign exchange interventions are an important instrument for the Swiss central bank to meet its inflation objective.
SNB Chairman Martin Schlegel reiterated related policy priorities in remarks last week, telling Reuters that foreign-currency interventions and interest rates remain the central bank’s principal tools to secure price stability - defined as inflation of between 0 and 2%, a mandate under Swiss law. At the SNB’s December interest-rate decision, Schlegel also said the central bank remained willing to be active in foreign exchange markets "as necessary."
Context and implications
The SNB’s statement restates an ongoing line of dialogue with U.S. authorities and underscores the bank’s position that its interventions are aimed at fulfilling its legal inflation mandate rather than distorting international competition.
While the U.S. report broadened the scope of scrutiny to include actions intended to prevent both currency depreciation and appreciation, it stopped short of accusing any major partner, including Switzerland, of manipulation.
The SNB’s response reiterates its openness to continued engagement with U.S. officials and its reliance on the toolkit of interest rates and foreign-exchange intervention to deliver price stability in line with its statutory target.