• Switzerland and the United States have formally agreed to avoid currency manipulation for competitive advantage
  • The joint statement comes after Switzerland was added to a US Treasury watch list for foreign exchange practices in June
  • The Swiss National Bank pledges to use interventions only for countering excessive volatility, not trade advantage

Switzerland and the United States have issued a joint statement affirming they will not manipulate their currencies for competitive advantage or to impact the international monetary system, marking a significant diplomatic step in ongoing currency consultations between the two nations.

The Swiss National Bank explicitly pledged to avoid targeting exchange rates for such purposes, according to the statement released Thursday. This development follows Switzerland's addition to a US Treasury watch list for foreign exchange practices in June, which had heightened scrutiny of the SNB's interventions.

"The joint statement reinforces both countries' commitments to IMF and G20 principles on fair currency practices," said a person familiar with the discussions, who asked not to be identified because the talks were private. "Neither will manipulate exchange rates to alter trade balances or obstruct international adjustments."

The agreement comes amid broader economic tensions, including a 39% tariff the US imposed on certain Swiss exports earlier this year. The statement notes that interventions in foreign exchange markets are recognized as legitimate only for countering excessive volatility, not for securing competitive trade advantages.

Switzerland was previously labeled a "currency manipulator" by the Trump administration following large-scale SNB interventions to counter franc appreciation during periods of global uncertainty. The Swiss franc's traditional role as a "safe haven" currency often leads to its strengthening during market turmoil, prompting past interventions by the central bank.

A spokesperson for the SNB declined to comment beyond the joint statement when reached Thursday. The statement is not legally binding and essentially formalizes prevailing practice since 2022, when bilateral dialogue intensified.

The US Treasury's policy remains to closely monitor global partners for unfair currency actions, though its latest official report did not label Switzerland or any major partner as a manipulator for the preceding year. The joint pledge aims to ease bilateral tensions by codifying respected monetary norms and affirming Switzerland's commitment to transparent, stability-oriented policy.

Most experts predict the SNB will continue prioritizing domestic price stability, using market interventions only if necessary for monetary policy—not to target exchange rates for trade advantage. The agreement provides reassurance to global investors about stability and predictability in the Swiss franc and USD trading relationship.