Swiss central bank continues to vacuum up foreign currencies
The Swiss National Bank (SNB) spent almost CHF25 billion ($28 billion) in the foreign currency markets in the third quarter, raising its reserves to CHF938 billion so far this year. Two days ago, Switzerland was branded a currency manipulator by the United States.
This content was published on
2 minutes
swissinfo.ch/mga
Español
es
El BNS mantiene su política en materia de divisas extranjeras
The latest figures, released on Friday, show the rate of foreign currency intervention slowed between July and the end of September. In the first six months of the year the SNB had poured CHF90 billion into applying the brakes on the franc’s rising value.
At the same time, the SNB’s current account surplus decreased from CHF13 billion in June to CHF9 billion in September. This is another key parameter on the US currency manipulation watchlist.
The coronavirus pandemic has only increased investor interest in the franc, while the US dollar has generally fallen in value against other currencies this year. At its quarterly monetary policy meeting on Thursday, the SNB vowed to continue with its foreign currency intervention.
“Had we not intervened, the franc would have appreciated significantly more, and this would have placed an additional burden on our economy in an already exceptionally challenging environment,” noted Andréa Maechler, a member of the SNB governing board.
Reactions
The US ambassador to Switzerland Ed McMullen played down the currency manipulation debate, telling Le Temps newspaper that it was a “purely mechanical decision” that bears little resemblance in tone to a manipulation claim issued against China last year.
Martin Naville, CEO of the Swiss-American Chamber of Commerce, has also sought to downplay the dispute. In an open letter with the sub-heading “let’s not get overly excitedExternal link”, Naville urges people to “relax” and “look at the facts” rather than rely on the “breathless reporting” of the media.
“Looking at the development of the Swiss Franc–US Dollar exchange rate, it is clear that there is currently either no currency manipulation or Switzerland is doing a very poor job. In the last 20 years, the Swiss Franc appreciated 100% to the US Dollar! In 2001, one Swiss Franc cost US$ 0.57, today it costs US$ 1.14! Tell me about manipulation,” he writes.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
TradeXBank to resume full operations after Sberbank Switzerland taken off sanctions list
This content was published on
TradeXBank, the former Swiss branch of Russia’s Sberbank, will be able to resume its dollar-denominated activities from the second half of this year.
Geneva decides not to remove controversial memorials
This content was published on
The city of Geneva has presented an action plan regarding a series of controversial local statues and monuments of historical figures linked to racism, colonialism or slavery.
University of Lausanne calls for end to pro-Palestine sit-in
This content was published on
The pro-Palestinian occupation continues at the University of Lausanne (UNIL). On Monday evening, a group of students refused to agree to the deadline set by the rectorate.
Ukraine peace conference should include Russia, says Chinese ambassador
This content was published on
China supports a peace conference on the Ukraine war that would see equal participation of all parties, says Chinese Ambassador to Russia Zhang Hanhui.
This content was published on
A majority of Swiss citizens have open attitudes towards various infertility treatments, including even egg donation, which is currently prohibited.
Reports of Swiss cyber fraud almost doubled in six months
This content was published on
The head of the new Federal Office for Cybersecurity (FOC), Florian Schütz, has presented a new strategy after just over four months in office.
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.
Read more
More
Is Switzerland a currency manipulator?
This content was published on
The US move to brand Switzerland a currency manipulator has been met with denials from the Swiss National Bank. Fabio Canetg explains.
This content was published on
The US has labeled Switzerland as a currency manipulator in what may be one the final broadsides by the Trump administration to international trading partners.
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.