Next US Treasury report should not designate Swiss as a currency manipulator

Didn’t know this was coming.

Mark Sobel in this piece argues that US should not label Swiss Franc as a manipulative currency:

Market speculation is heating up that the US Treasury, in its next semi-annual foreign exchange report, may designate Switzerland as a currency manipulator. Treasury brought back the Swiss onto the monitoring list in its last report in January.

Whether Switzerland manipulates the franc is a question landing repeatedly on my desk. Reaching conclusions about harmful currency practices and manipulation entails judgement. Distinguishing between Switzerland and east Asian nations – often Treasury’s focal point – isn’t straightforward. While I have no insights into whether Treasury will issue a report soon or what it might say, I think Treasury won’t designate the franc and that the balance of evidence supports not doing so.


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