swiss govt plays down inclusion on us watch list
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Swiss govt. plays down inclusion on US watch list

Arab Today, arab today

Arab Today, arab today Swiss govt. plays down inclusion on US watch list

Swiss 100 franc bank notes are withdrawn from an ATM
Zurich - Arab Today

The Swiss government on Tuesday played down Switzerland’s reappearance on a US Treasury watch list of potential currency manipulators, saying the status would have no immediate consequences.
“The Swiss National Bank (SNB), according to its legal mandate, follows its own independent monetary policy,” the Swiss Finance Ministry said in a statement.
“Their currency purchases are not aimed at devaluing the currency and raising the competitiveness of Swiss exports,” it added. “Its goal is to limit the extent of the franc’s overvaluation and prevent a strong downward push in inflation.”
Switzerland, which was also mentioned by the Treasury last October, appeared along with China, Japan, South Korea, Taiwan and Germany on the latest list, which aims to curb what the US calls “unfair currency practices.”
The Swiss qualified because for years they have used foreign exchange purchases to counter persistent inflows into the safe-haven franc. The SNB has also introduced negative interest rates to make the franc less attractive. The SNB’s foreign exchange reserves jumped by nearly 15 billion Swiss francs ($14.93 billion) in March to 683.18 billion francs, larger than Swiss gross domestic product (GDP).
Sight deposits at the central bank, a proxy for currency interventions, showed the SNB continued to sell francs ahead of the French presidential elections starting on Sunday, according to the latest data on Tuesday. The SNB was not immediately available for comment.
Instead of market interventions, Switzerland should rely more on fiscal policy and interest rates to support its economy and ward off demand for the franc, the US Treasury said in its report on Friday.
Switzerland met two of its currency manipulation criteria — having a material current account surplus at 10.7 percent of GDP in 2016 — and having engaged in a “sizeable one-sided foreign exchange purchases,” the US report said.
At $13.7 billion Switzerland did not, however, have enough of a bilateral trade surplus with the US to meet the third criteria, which could trigger bilateral talks aimed at correcting the situation.
“As long as Switzerland is only on the watch list, it is not a problem,” said David Marmet, an economist at Zuercher Kantonalbank. “Switzerland fulfills two of the three criteria, but it cannot be long before the trade balance means it meets all three, when it could become a problem.
“Still the Swiss will try to explain to the Americans their situation,” Marmet said. “I think the SNB would prefer not to be on the list, but I do not think it will affect its monetary policy — what else can they do?”

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

swiss govt plays down inclusion on us watch list swiss govt plays down inclusion on us watch list

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

swiss govt plays down inclusion on us watch list swiss govt plays down inclusion on us watch list

 



GMT 19:31 2016 Wednesday ,05 October

Yemeni President receives British Ambassador to Yemen

GMT 14:00 2011 Sunday ,20 November

Raging bulls connect with past

GMT 07:55 2015 Friday ,11 December

Indian women in battle against Mumbai mosque ban

GMT 21:28 2017 Tuesday ,19 September

Arab Coalition destroys sites of insurgents in Najran

GMT 13:48 2017 Monday ,01 May

Omani woman kills man after blackmail attempt

GMT 20:55 2017 Sunday ,14 May

Egypt condemns suicide attack in Saudi Arabia

GMT 09:40 2017 Saturday ,18 February

Pollution reaches "unbearable" level to humanity

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 20:14 2017 Saturday ,12 August

Book gives voice to Vietnam's strangled anger

GMT 11:55 2017 Saturday ,11 March

Leads Sri Lanka to crushing win over Bangladesh

GMT 11:36 2017 Saturday ,03 June

April21st-May21st

GMT 03:48 2017 Saturday ,30 September

Turkey will update customs union agreement with EU

GMT 19:59 2017 Monday ,20 February

Sauber aim for return to midfield with new F1 car

GMT 09:18 2017 Wednesday ,26 April

Shutdown threat ebbs as Trump relents on wall funding

GMT 20:48 2017 Monday ,30 October

171 Ukrainian tourists arrive at Marsa Alam airport

GMT 20:57 2016 Wednesday ,30 November

September 22 - October 22
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday