USA removes Switzerland from currency watch list - Current developments in the financial sector

USA removes Switzerland from currency watch list - Current developments in the financial sector

According to a report by www.fuw.ch, the US has removed Switzerland from its watch list for possible exchange rate manipulation. This happened because Switzerland only exceeded a critical threshold in one area in two consecutive monitoring periods. For years, the Swiss National Bank (SNB) had resisted excessive appreciation of the franc by purchasing foreign currencies. However, the central bank made a shift in its monetary policy in June 2022 in view of rising inflation, leaving behind the era of negative interest rates.

The removal of Switzerland from the US exchange rate manipulation watch list could have various effects. On the one hand, this could boost confidence in the Swiss economy, as the delisting indicates that the US no longer sees signs of currency manipulation. This could lead to a strengthening of the Swiss franc as investors could view the currency as more stable and reliable.

On the other hand, removal from the watch list could also lead to an increase in imports and a decrease in exports to the US, as a stronger franc would make Swiss goods more expensive for US consumers. This could have an impact on export-oriented Swiss companies and lead to a shift in the trade balance.

Overall, the removal from the watch list by the USA represents a challenge for Switzerland, as there could be changes in exchange rates and trade. The trust of investors and the image of the Swiss economy could also be influenced. It remains to be seen how economic trends in Switzerland will develop in the following quarters.