SNB: Switzerland does not engage in any form of currency manipulation

In a response to the US Treasury report that named Switzerland a currency manipulator, the Swiss National Bank (SNB) said that Switzerland does not engage in any form of currency manipulation, as reported by Reuters.

Key takeaways

"The SNB’s interventions in the foreign exchange market do not serve the purpose of preventing the balance of payments adjustments or gaining unfair competitive advantages for the swiss economy."

"Foreign exchange market interventions are necessary for Switzerland's monetary policy to ensure appropriate monetary conditions and therefore price stability."

"The SNB's monetary policy approach remains unchanged by the US Treasury report."

"In light of the economic situation and the fact that the Swiss franc is still highly valued, the SNB remains willing to intervene more strongly in the foreign exchange market."

"Together with the Swiss authorities, the SNB is in contact with the US authorities to explain Switzerland's economic situation and monetary policy."

Market reaction

The USD/CHF pair's reaction to this development was largely muted. As of writing, the pair was trading at 0.8845, down 0.12% on a daily basis.