The United States Treasury has placed Switzerland on its watchlist, intensifying scrutiny of the nation's exchange rate policies and their potential impact on international trade. This development precedes the 2025 trade review and highlights the U.S.'s focus on fair trade practices and global economic stability. The decision to include Switzerland on this monitoring list stems from concerns that its currency management strategies might offer an unfair trade advantage.
While Switzerland was not officially designated as a currency manipulator in 2024, its inclusion on the watchlist signifies a proactive U.S. approach to addressing potential economic imbalances. Historically, the Swiss National Bank (SNB) has intervened in currency markets by purchasing foreign currencies to manage the value of the Swiss franc, a practice that has drawn international attention. In December 2020, the U.S. Treasury had previously labeled Switzerland a currency manipulator, citing interventions aimed at preventing effective balance of payment adjustments. However, by April 2021, Switzerland was removed from the manipulator designation, though it remained on a monitoring list for enhanced engagement regarding currency undervaluation and external imbalances.
Switzerland's current inclusion on the watchlist is based on specific criteria, including a significant trade surplus with the U.S., a material current account surplus, and substantial foreign currency interventions. In 2025, Ireland and Switzerland were noted as new additions to the monitoring list, which also includes major economies like China, Japan, and Germany. The U.S. Treasury aims to foster transparency and prevent practices that could distort global trade dynamics through this enhanced scrutiny.
The Swiss National Bank has consistently maintained that its monetary policy, including foreign exchange interventions, is aimed at ensuring price stability and is not intended to gain unfair competitive advantages. The SNB states that interventions are a crucial tool for managing monetary conditions and fulfilling its mandate. Despite these assurances, the U.S. Treasury's decision underscores the ongoing international effort to ensure a level playing field in global commerce. This development highlights the intricate relationship between national economic policies and international trade relations, emphasizing the importance of transparent and equitable currency practices in the dynamic landscape of global economic oversight.