The United States does not find any currency manipulation by Switzerland
Switzerland was recently on the US Treasury’s “watch list”. This has now changed. But you want to stay in close contact because of the currency practices.
The US moved away from its concerns about Swiss monetary policy. The US Treasury said Thursday that as of June 2022, no major US trading partner had manipulated exchange rates to gain an unfair competitive advantage. At the same time, the semi-annual report said that the Ministry of Finance will remain in close contact with Switzerland regarding its currency practices. Switzerland was last on the US “watch list”.
For years, the Swiss National Bank (SNB) has been using foreign exchange purchases to counteract the excessive appreciation of the franc, which was needed as a safe haven in times of crisis. In light of rising inflation, the central bank shifted its monetary policy in June and left the era of negative interest rates behind in September. The appreciation of the franc is tolerated as a dampening effect of inflation.
The US Treasury report said that most of the interventions were aimed at strengthening currencies, not weakening them. At the same time, it was recognized that emerging and developing economies may need a range of approaches – including interventions – to respond to current global economic conditions.
A senior Treasury official told reporters that the dollar’s strength against other currencies could begin to weaken with the peak of monetary tightening by the Federal Reserve and other central banks.
Reuters
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