Swiss National Bank Intervenes to Weaken Franc Amid US Currency Concerns

The SNB acts to protect Swiss exports. Meanwhile, the US warns against unfair currency practices.

, and Administrator

2025 October 23 . 8:04 AM

1 min read

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Swiss National Bank Intervenes to Weaken Franc Amid US Currency Concerns

The Swiss National Bank (SNB) has stepped in to weaken the Swiss franc, purchasing foreign currencies to curb its rising value. This move comes as investors view the franc as a 'safe haven' asset, driving up its market value. The US Treasury recently added Switzerland to its currency manipulation watch list, citing concerns about the franc's strength.

Switzerland's currency has long been seen as a refuge during times of global uncertainty. This perception, combined with recent market conditions, has led to an increase in the franc's value. The SNB's intervention aims to prevent the franc from becoming too strong, which could make Swiss exports less competitive and imports cheaper.

The US Treasury's June report highlighted the impact of unfair currency practices abroad on the US trade deficit and manufacturing jobs. Switzerland was previously accused of manipulating the franc during the Trump administration. However, it was removed from the US watch list in 2021 after Joe Biden took office. Both Switzerland and the US have committed to policies focused on currency stability rather than manipulation.

The SNB's intervention signals its commitment to maintaining a balanced Swiss economy. By managing the franc's value, the central bank aims to support both domestic and international trade. Meanwhile, the US Treasury's watch list serves as a reminder of the global interconnectedness of currency markets and their impact on international trade.