Switzerland remains on US Treasury’s ‘monitoring list’
Bastion of monetary policy: the Swiss National Bank in Bern.
Keystone / Peter Klaunzer
Bern is still under close observation by financial authorities in Washington, despite no longer being on the US list of designated currency manipulators.
The Treasury said on Friday that in 2022 Switzerland had exceeded only one of three criteria necessary to warrant “enhanced analysis” of its foreign exchange practices.
Nevertheless, Bern remains on a “monitoring list”, and Washington plans to “continue to conduct an in-depth analysis of Switzerland until it does not meet all three criteria under the 2015 [Trade Facilitation and Trade Enforcement] Act for at least two consecutive reports”.
To earn the label of currency manipulator and to warrant enhanced analysis, a country must have a bilateral trade surplus of at least $15 billion (CHF13.4 billion) with the US, foreign currency interventions higher than 2% of GDP, and a material current account surplus exceeding 3% of GDP.
And for the purposes of the report, the Treasury is only concerned with deliberate weakening of currencies for a trade advantage – not in order to stem inflation.
In the latest reportExternal link, Switzerland – with a global current account surplus of 10.1% of GDP – largely overshot one of the three factors, and as such the Treasury said it would continue “enhanced bilateral engagement with Switzerland to discuss the Swiss authorities’ policy options to address the underlying causes of its external imbalances”.
Watch list
In late 2020, Washington branded Switzerland a currency manipulator, accusing it of intervening in foreign exchange markets to prevent effective balance of payment adjustments. In April 2021 it rolled back on this, while maintaining a procedure of enhanced engagement to address Swiss “currency undervaluation and external imbalances”.
The Treasury’s current monitoring list also includes China, Taiwan, South Korea, Germany, Malaysia, and Singapore.
More
More
A blessing and a curse: the strength of the Swiss franc
This content was published on
In times of crisis, international investors often bet on the Swiss franc. How has this reputation come about?
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
This content was published on
Emergency crews contained the oil and began removing some of the pollution from the water’s surface, said the St Gallen cantonal police on Sunday.
Switzerland lifts sanctions on Syria after Assad’s fall
This content was published on
Switzerland is lifting economic sanctions on Syria, but targeted measures against figures linked to the former regime remain in place.
Thousands march in Bern calling for Gaza ceasefire
This content was published on
More than 10,000 people – or up to 20,000, according to organisers – marched through central Bern on Saturday afternoon in support for Gaza.
Zurich Pride draws large crowds amid financial strain
This content was published on
Following US President Donald Trump’s attacks on diversity initiatives, Zurich Pride fears more sponsors could pull out and is now facing financial difficulties.
Switzerland ‘deeply alarmed’ by Middle East escalation
This content was published on
Switzerland has voiced serious concern over rising tensions in the Middle East, and the UN chief says he is ‘alarmed’ by US strikes on Iran.
Switzerland among world’s most expensive for household electricity
This content was published on
According to a study by the comparison site Verivox, based on data from Global Petrol Prices, Switzerland came in tenth out of 143 countries.
Global uncertainty boosts Swiss-EU talks, says Cassis
This content was published on
Swiss Foreign Minister Ignazio Cassis says Switzerland’s talks with the European Union (EU) have been boosted by the current difficult global situation.
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.