Switzerland and the United States have issued a joint statement affirming that neither country will “target exchange rates for competitive purposes,” a development expected to ease longstanding tensions over Swiss foreign-exchange interventions.

The declaration also recognises that market interventions may be warranted to manage excessive volatility in exchange rates.

Under the agreement, the Swiss National Bank (SNB), Switzerland’s finance ministry and the U.S. Treasury assert that any foreign-exchange operations must align with their monetary policy mandates, primarily to maintain price stability—not to intentionally weaken or strengthen the currency to gain trade advantages.

The U.S. recognition of the SNB’s right to intervene is widely interpreted by analysts as a tacit “green light” for future operations under defined conditions.

The accord comes amid persistent pressure from Washington, which had in recent years placed Switzerland on a monitoring list of economies suspected of unfair currency practices.

In recent months, critics have accused the SNB of intervening excessively to cap the Swiss franc, thereby supporting Swiss exporters.

The joint statement addresses those critiques by clarifying that interventions are legitimate tools for smoothing disorderly market moves, not instruments for trade manipulation.

SNB Chairman Martin Schlegel reiterated that the central bank does not seek to secure an unfair advantage for Swiss exporters or impede adjustments in the current account.

He emphasised that any intervention would be in service of inflation control and aligning with the SNB’s mandate, not to serve as a competitive weapon.

The SNB also clarified that its interest-rate decisions remain the primary tool for monetary policy.

Economists note that the agreement may give Bern more policy flexibility.

With the franc having strengthened significantly in recent years, Swiss exporters and firms have suffered from squeezed margins.

The assurance from Washington could reduce the political risk of further interventions.

However, some analysts caution that the declaration may not eliminate future frictions if U.S. officials perceive Swiss actions as excessive or opaque.

The joint statement is a rare example of explicit foreign-exchange coordination between the two countries.

It is expected to provide greater clarity to markets over how and when the SNB might act in foreign-exchange markets.

For now, the accord signals that both nations prefer monetary stability over competitive devaluation, though vigilance will likely remain high in financial circles.