- Switzerland is not a currency manipulator.
- We have only acted to dampen the overvaluation of the Franc which threatened price stability.
- Currency market interventions are not about gaining a competitive advantage for Switzerland.
- Technical experts in the US understand the Swiss position.
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- Cannot rule out that negative rates could be a necessary instrument in the future.
- National bank does not like negative rates.
Just a couple of remarks on currency intervention. The SNB and the BoJ are the two most active ones among the major central banks in currency interventions.
A currency manipulator though is a country that deliberately influences the exchange rate of its currency to gain unfair advantages in international trade. That’s not the case for the SNB and the BoJ. They care about the impact on price stability.
The part on negative rates is not new. We’ve heard those same comments for months.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
