Swiss Franc's 'Safe Haven' Status Draws US Scrutiny
The Swiss franc's value has been under international scrutiny, with the US Treasury recently adding Switzerland to its currency manipulation watchlist. This move comes as investors view the franc as a 'safe haven' asset, potentially driving up its value and affecting trade balances.
The Swiss National Bank (SNB) has been intervening in currency markets, purchasing over 5 billion Swiss francs in the second quarter of 2025. This action, aimed at reducing the franc's value, has drawn criticism from the US Treasury, which accused Switzerland of manipulating its currency.
During the Trump administration, similar concerns were raised. The US Treasury's June report highlighted unfair currency practices abroad, including Switzerland's, that it believes contribute to the US trade deficit and manufacturing job losses. However, Swiss authorities maintain that their monetary policy is focused on price stability, not exchange rates.
The rising franc value can make Swiss exports less competitive and reduce the price of imports. With the US Treasury's recent addition of Switzerland to its currency manipulation watchlist, the franc's value and its impact on trade will continue to be closely monitored.
