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keystone-sda.ch
![It will not be easier for SNB chief Thomas Jordan (57).]()
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It will not be easier for SNB chief Thomas Jordan (57).
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AFP
![The Treasury Department under US President Donald Trump (74) could soon mark Switzerland as a currency manipulator. UBS wrote this in a new report.]()
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The Treasury Department under US President Donald Trump (74) could soon mark Switzerland as a currency manipulator. UBS wrote this in a new report.
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keystone-sda.ch
![The US National Bank has long been a thorn in the side of buying foreign currencies from the Swiss National Bank.]()
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The US National Bank has long been a thorn in the side of buying foreign currencies from the Swiss National Bank.
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DUKAS
![Delicate relationship between US President Donald Trump and Treasury Secretary Ueli Maurer over the foreign exchange interventions of the Swiss National Bank.]()
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Delicate relationship between US President Donald Trump and Treasury Secretary Ueli Maurer over the foreign exchange interventions of the Swiss National Bank.
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Next shock for Swiss National Bank chief Thomas Jordan (57). The US Treasury is likely to put Switzerland on the list of outlawed currency manipulators soon, as UBS economist Alessandro Bee said today «Bloomberg» says.
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Switzerland has been under surveillance since mid-January. The reason is the billions of euros and dollars that the Swiss National Bank (SNB) is buying to devalue the Swiss franc. In early May, she was sitting in foreign currencies worth 800 billion Swiss francs. In the meantime, this value should have increased further.
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Unfair trading advantage
The United States has not liked this for a long time. They accuse Switzerland of keeping the franc artificially low and thus gaining an unfair trading advantage. The SNB is vehemently opposing this accusation. It justifies its aggressive currency buying strategy with the export dependency of the Swiss economy.
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The Trump administration’s finance ministry had already classified Switzerland as a currency manipulator from 2016 to 2019 – at that time, Switzerland avoided economic damage. Even so, re-listing could have drastic ramifications for trade with the world’s largest economy.
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Franc stability in jeopardy
This could prohibit government procurement contracts. The US could also request a renegotiation of the trade agreement between the two countries. “A lot now depends on the diplomatic skills of the Swiss authorities,” explains UBS economist Bee.
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And further: “Even without a conflict, fulfilling all criteria should lead to increased uncertainty about the future monetary policy of the SNB.” And that could significantly weaken the future stability of the Swiss franc. (ste)
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