Introduction
The Swiss National Bank (SNB) has clarified its position regarding currency interventions amidst U.S. trade policy changes.Context
In a recent statement, SNB governing board member Petra Tschudin emphasized that the central bank does not engage in currency manipulation. Responding to concerns about whether Switzerland might be impacted by U.S. trade measures, Tschudin stressed that the SNB's foreign exchange market interventions have solely aimed to achieve its inflation targets, not to enhance exports.Developments
At an event in Zurich on April 3, Tschudin reaffirmed that the bank strives to maintain price stability with an inflation goal of between 0-2 percent. Her comments followed the announcement that the United States had imposed higher import tariffs on Switzerland than those applied to the European Union, surprising local policymakers and businesses alike. President Trump has indicated that he aims to reduce the U.S. trade deficit, claiming that the nation has been unfairly treated by its trading partners.The U.S. government has justified its tariff rates by citing various factors, including trade barriers, varying consumption tax rates, compliance difficulties, and accusations of currency manipulation. Tschudin expressed surprise regarding the level of these tariffs, reiterating that Swiss interventions are defensive, especially during periods when investors favor the Swiss franc as a safe haven currency. The SNB intends to maintain an open dialogue with the U.S. administration as it assesses the implications of these tariffs.