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SNB's Schlegel still ready to intervene in forex markets despite U.S. list
Published by Global Banking & Finance Review®
Posted on June 21, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 21, 2025
2 min readLast updated: January 23, 2026
SNB's Schlegel affirms readiness to intervene in forex markets to meet inflation targets, despite Switzerland's addition to a US currency manipulation watch list.
ZURICH (Reuters) -The Swiss National Bank is ready to intervene in foreign currency markets to hit its inflation target, Chairman Martin Schlegel said, despite Switzerland recently being added to a U.S. watch list on currency manipulation.
The SNB, which cut its key interest rate to zero on Thursday, uses interest rates to steer inflation to its 0-2% target, Schlegel told broadcaster SRF.
"We're also ready to be active on the currency markets," Schlegel said in the interview broadcast on Saturday.
The U.S. Treasury this month put Switzerland on a list of countries being monitored for unfair currency and trade practices.
Bern is seeking to avoid the 31% trade tariffs Washington has threatened against Switzerland, and Schlegel said the SNB conducts policy in the national interest.
"Switzerland and the SNB are not currency manipulators," he said. "When we have intervened in the past, we have done it only to achieve our goal of price stability. Our motivation is not to gain an unfair advantage for Swiss exporters."
There had been a "very good" exchange with U.S. officials the last time Switzerland appeared on the list, and there was a good understanding of why Switzerland was active in foreign currency markets, he said.
Even if Switzerland did reappear on the list, that would mean further dialogue, Schlegel added.
He also backed the government's proposals for stricter rules for UBS, unveiled earlier this month, which could force the bank to hold $26 billion more in core capital.
"This is not a radical solution," said Schlegel. "Everyone has an interest in UBS doing well, that UBS is a strong bank and that UBS is also a bank that is strongly capitalised and well prepared in terms of liquidity."
(Reporting by John Revill)
The Swiss National Bank is prepared to intervene in foreign currency markets to achieve its inflation target, as stated by Chairman Martin Schlegel.
Switzerland was added to the U.S. Treasury's list for unfair currency and trade practices, prompting concerns about potential trade tariffs.
Schlegel emphasized that Switzerland and the SNB are not currency manipulators and that past interventions were aimed solely at achieving price stability.
Schlegel mentioned that if Switzerland reappears on the U.S. list, it would lead to further dialogue with U.S. officials.
Schlegel backed proposals for stricter rules for UBS that could require the bank to hold an additional $26 billion in core capital.
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