Swiss National Bank Signals Willingness to Intervene in Forex Markets Despite U.S. Watchlist

On Saturday, June 21, 2025, Swiss National Bank Chairman Martin Schlegel gave an interview to Swiss public broadcaster SRF.  The interview aired two days after the SNB held a press conference in Zurich on June 19, where it cut the key interest rate to 0%. These moves come just as the U.S. Treasury added Switzerland to its currency manipulation watchlist. Schlegel said the SNB foreign exchange market policy remains focused on maintaining price stability, not competitive devaluation. That stance holds firm even amid political pressure from abroad.

SNB Foreign Exchange Market Policy Holds the Line on Currency Strategy

Schlegel stated clearly, “We’re also ready to be active on the currency markets.” He emphasized that the SNB would act only to stabilize inflation. The bank targets inflation between 0% and 2%. On June 19, it reduced its benchmark interest rate to zero. That decision was aimed at countering weakening domestic demand. The SNB foreign exchange market policy still allows interventions when needed. Despite the Swiss interest rate cut, the bank made clear it wouldn’t shy away from defending its economic goals. Switzerland is now under U.S. scrutiny, but Schlegel stressed that past interventions weren’t about helping Swiss exporters. He said they were “strictly to preserve price stability.”

U.S. Watchlist and UBS Reforms Shape SNB Strategy

Switzerland was added to the U.S. trade tariff threats list this month. The Treasury said it would monitor the country for unfair currency practices. While the label doesn’t bring penalties, it adds pressure. Washington has threatened 31% tariffs if no resolution is found. Schlegel said the SNB has nothing to hide. He highlighted past dialogue with the U.S. as “very good.” The SNB foreign exchange market policy, he said, is transparent and well understood by global partners. He added that if Switzerland appears on the list again, it will open more dialogue, not conflict.

Schlegel also voiced support for UBS capital rules proposed by the Swiss government. The plan would require UBS to hold $26 billion in additional core capital. He said the proposal “isn’t a radical solution,” adding that “everyone wants UBS to stay strong and well-capitalized.” This proposal reflects Switzerland’s broader effort to protect financial stability, especially as global risks rise.

Market Tools Remain Flexible for Stability

The SNB is keeping its tools flexible. Schlegel reaffirmed that interest rate policy is the main lever. However, if rates are not enough, the SNB foreign exchange market policy will remain in play. The bank’s dual-track approach, rate changes, and market action, helps it respond quickly to inflation shifts. With Switzerland’s currency manipulation back in headlines, the SNB’s openness is vital. Schlegel’s message was clear: the bank is not a manipulator. It acts to meet domestic goals, not to distort global trade. He said that despite global concerns, the SNB’s mission is local and its policy well-defined.

What’s Next for the Swiss Franc and Policy Path

In the coming months, the SNB will continue watching inflation data closely. If inflation rises or geopolitical tensions escalate, the bank may act in markets again. However, the SNB foreign exchange market policy will only be used if necessary. The focus remains on stable prices and economic health. As the U.S. reviews Switzerland’s position, further talks are likely. For now, the SNB is staying the course with clarity, calm, and control.