Foreign exchange purchases – US suspects Switzerland in currency handling

The United States continues to have a critical eye on Swiss monetary policy, and thus the SNP. According to the US Treasury Department’s half-yearly report on the monetary policy of the most important U.S. trading partners for Congress, Switzerland, along with Vietnam and Taiwan, continues to meet all three conditions that the company uses as an indicator of currency handling under the 2015 Trade Act.

However, it said that under the Trade and Competition Act of 1988, there was insufficient evidence that all three countries were influencing their currencies to gain trade balance or competitive advantage.

However, the ministry said it would liaise with Switzerland and Vietnam to better determine whether interventions in the currency market create unfair conditions.

SNP: Forex market intervention is essential

The SNP notes that in a recent report, Switzerland is no longer mentioned as a currency handler. As in the past, the SNP has been accused of money laundering. Rejects again.

According to the SNP, foreign exchange market interventions are essential to ensure appropriate monetary conditions and thus price stability. These interventions are not intended to prevent changes in the balance of payments or to gain unfair competitive advantage for the Swiss economy.

The International Monetary Fund (IMF) continues to assess Switzerland’s monetary and monetary policy as appropriate, which is further emphasized. In particular, the International Monetary Fund considered foreign exchange market intervention as a legitimate tool in view of the difficult economic environment in which the SNP operates.

They say Switzerland and the United States will continue to have dialogue with key economic partners and the U.S. Treasury. (Reuters / SDA)