The US Treasury Department has put Switzerland back on a biannual list of countries that are under observation because of large trade surpluses with the United States.
This content was published on
2 minutes
Keystone-SDA/ts
Switzerland was previously included on the Monitoring ListExternal link between October 2016 and October 2018, “having a material current account surplus and engaged in persistent, one-sided intervention in the foreign exchange market”. It was then removed in May 2019.
The US Treasury announced on Tuesday that Switzerland’s trade surplus with the US in the four quarters through the end of June 2019 totalled $21.8 billion (CHF21.1 billion). Switzerland also had a current account surplus which amounted to 10.7% of GDP in the same period.
“To help narrow its large and persistent trade and current account surpluses, Switzerland should adjust macroeconomic policies – in particular, using its ample fiscal space to more forcefully support domestic economic activity and reduce reliance on monetary policy as it approaches its limits,” the Treasury urged in the report.
The State Secretariat for International Finance (SIF) reacted quickly to the news. “It should be emphasised that Switzerland does not engage in any manipulation of its currency in order to prevent balance of payments adjustments or to gain unjustified competitive advantages,” it said in a statement on Tuesday.
SNB interventions
The Treasury said it was also closely monitoring the interventions of the Swiss National Bank (SNB) in the foreign exchange market. The SNB has described the franc as “highly valued”.
Although the SNB does not publish figures on its interventions, the Treasury estimates that net purchases of foreign exchange over the four quarters through June 2019 totalled 0.5% of GDP.
“Since mid-2019, Switzerland’s foreign exchange purchases have increased markedly as the Swiss franc has appreciated against both the dollar and the euro,” the report said. “Treasury continues to encourage the Swiss authorities to publish all intervention data on a higher frequency basis.”
The Treasury report also cited continued concerns about currency practices of nine other countries: China, Germany, Ireland, Italy, Japan, Malaysia, Singapore, South Korea and Vietnam.
More
More
Swiss policymakers caught in crossfire over franc
This content was published on
The adage in financial markets is “do not fight the central bank”. But can central banks fight the US president? The SNB may be about to find out.
Swiss money laundering office registers record number of reports
This content was published on
The Money Laundering Reporting Office Switzerland (MROS) registered a record number of reports of suspicious activity last year.
Two teens accused of planning terror attack released from custody
This content was published on
The Schaffhausen judiciary has released the two teenagers from custody who allegedly planned bomb attacks in Switzerland.
OECD: Sluggish economic activity slowing growth in Switzerland
This content was published on
Sluggish economic activity at the start of the year is weighing on growth in Switzerland, with GDP expected to fall to 1.1% in 2024.
Report finds mistakes which led to Swiss government data breach
This content was published on
Mistakes were made by both the government and internet company Xplain in the case of a criminal cyber-attack on the Bern-based IT business.
Swiss government wants better gender balance in federal administration
This content was published on
New Swiss government personnel management targets say there must be even more female managers in the federal administration.
Swiss national science foundation funded over 5,000 projects in 2023
This content was published on
In 2023, the Swiss National Science Foundation (SNSF) provided a total of CHF961 million worth of funding towards research projects.
Switzerland invites 160 delegations to June Ukraine peace talks
This content was published on
Russia is currently not among the delegations invited to talks aimed at helping bring about peace in the conflict between Moscow and Ukraine.
Survey: air travel most popular way to go on holidays for Swiss
This content was published on
Despite the climate crisis, flying is the most popular mode of transport for private travel – particularly among young, urban and high-income travellers.
Swiss government to use phone data to identify asylum seekers
This content was published on
From April 2025, authorities plan to be able to analyse data from mobile phones, computers and other data carriers to identify asylum seekers.
This content was published on
Swiss companies exported machinery product in the value of CHF1.45 billion ($1.46 billion) to China and Hong Kong in the first six months of 2018.
This content was published on
The value of exports gained 3.8% on 2015 to reach CHF210.7 billion ($210.6 billion), according to the Federal Customs Administration. Imports also grew, but the trade surplus also notched a record of CHF37.5 billion. This compared to a -2.6% decline on Swiss exports in 2015 – the year the franc experienced massive volatility as it…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.