Swiss National Bank Stands Firm Amid U.S. Currency Manipulation Allegations
The Swiss National Bank (SNB) maintains its stance on foreign currency market interventions after the U.S. listed Switzerland for currency monitoring. Despite denying manipulation, the SNB emphasizes its focus on Switzerland's economic interests and maintaining inflation targets. Discussions with U.S. authorities continue regarding monetary policies.
The Swiss National Bank (SNB) has asserted its commitment to intervene in foreign exchange markets as needed, following Switzerland's addition to a U.S. watchlist for potential currency manipulation. This decision came after the U.S. Treasury released a report highlighting countries with concerning trade practices.
Denying any efforts to manipulate the Swiss franc for unfair advantages, the SNB emphasized its adherence to Switzerland's economic interests. The central bank continues to engage with U.S. authorities, aiming to clarify its monetary policies and maintain inflation within the 0-2% target range.
While Swiss inflation reached a four-year low in May, with a 0.1% decline in prices, the SNB's foreign exchange purchases in 2024 were minimal, totaling $1 billion, far below the 2% GDP threshold set by the U.S. Treasury. Economic experts, including EFG Bank's GianLuigi Mandruzzato, believe the report will not significantly alter SNB's approach but express caution under the current U.S. administration.
(With inputs from agencies.)
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