Switzerland and the United States Reaffirm Commitment Against Currency Manipulation

On September 29, 2025, Switzerland and the United States issued a joint statement reaffirming their commitment to avoiding currency manipulation. This agreement emphasizes both nations' dedication to maintaining fair exchange rates and a stable international monetary system. The Swiss National Bank (SNB) has pledged to focus its monetary policy on ensuring price stability within Switzerland, rather than targeting exchange rates for competitive advantages. This declaration follows ongoing discussions between the Swiss central bank and the U.S. Treasury, which began in 2022.

Switzerland and US Reaffirm Currency AgreementA Confirmation of the Obvious as a Tactical Concession to the U.S.?CityLab

Switzerland was placed on the U.S. Treasury's watch list of countries suspected of manipulating their currencies in June 2025. This designation was a response to concerns regarding the SNB's foreign exchange policies and the country's significant trade surplus. The U.S. Treasury has expressed that unfair currency practices contribute to the U.S. trade deficit and negatively impact domestic manufacturing employment. Historically, Switzerland was removed from this watch list in 2021 under President Joe Biden's administration after being accused during Donald Trump's presidency.

The Local (Switzerland)

In the second quarter of 2025, the SNB undertook its most significant foreign currency purchases in over three years, amounting to 5.1 billion Swiss francs ($6.4 billion). This intervention was largely a response to the appreciation of the Swiss franc, which surged following Trump's announcement of tariffs on U.S. imports in April 2025. The SNB's actions aimed to mitigate the impact of the franc's rise on Swiss exports, which could become less competitive in international markets.

ReutersCityLabThe Local (Switzerland)

The joint statement reinforces a collaborative effort to ensure transparency and fairness in international finance. Both countries have committed to publishing relevant statistics regarding foreign exchange interventions and reserves. The SNB has emphasized that while it will not target exchange rates for competitive purposes, it retains the right to intervene in currency markets to address excessive volatility or disorderly market conditions.

A Confirmation of the Obvious as a Tactical Concession to the U.S.?

Despite the reaffirmation of commitments, some analysts view the declaration as a tactical concession to the U.S. rather than a substantial change in policy. Critics argue that the agreement does not impose new obligations on Switzerland and may be perceived as a response to U.S. pressure, particularly in light of the recent tariff impositions. The SNB's interventions, while aimed at stabilizing the economy, could attract scrutiny from the U.S. if perceived as currency manipulation.

A Confirmation of the Obvious as a Tactical Concession to the U.S.?

• “monetary policy will remain oriented towards maintaining appropriate monetary conditions to safeguard price stability and will not target exchange rates for competitive purposes” — Swiss Authorities

The Local (Switzerland)

• “However, the SNB would not allow its monetary policy to be restricted and would intervene in currency markets if such measures were deemed the best instrument in a given situation.” — SNB Officials

A Confirmation of the Obvious as a Tactical Concession to the U.S.?

Moving forward, the SNB is expected to continue its dialogue with the U.S. Treasury while navigating the complexities of foreign exchange interventions and maintaining price stability. The ongoing monitoring of Switzerland's currency practices by the U.S. will likely influence future economic policies and international relations between the two nations.

A Confirmation of the Obvious as a Tactical Concession to the U.S.?