John Revill, 16 April 2021
ZURICH (Reuters) – The Swiss National Bank (SNB) said on Friday it remained ready to intervene in foreign exchange markets, after the U.S. Treasury Department dropped its currency manipulator label for the country even though it met criteria for the designation.
The Swiss central bank noted the U.S. Treasury Department did not use the term currency manipulator in a new report, adding its foreign exchange purchases were not intended to alter Swiss balance of payments or unfairly help the Swiss economy.
“The SNB’s position is therefore clear: Switzerland does not engage in any currency manipulation,” the SNB said.
In December, President Donald Trump’s outgoing administration labeled Switzerland and Vietnam manipulators.
The Treasury Department, now under President Joe Biden, in its latest report said it will undertake “enhanced engagement” with both countries as well as Taiwan, on grounds they met the criteria under a 2015 U.S. currency manipulation law.
Still, a Treasury official said it was possible for countries like Switzerland to meet the tests under the 2015 law without being manipulators.
The report also concluded there was insufficient evidence under a separate 1988 law to conclude the three countries were manipulating exchange rates.