Switzerland and the United States have agreed not to manipulate their respective exchange rates, ensuring that the European country does not artificially strengthen the franc.
The Swiss National Bank and the US Treasury said in a joint statement on Monday that neither country would act to alter currency values for competitive advantage.
However, the statement noted that market interventions would still be permitted to manage volatility or sudden shifts in exchange rates.
The announcement comes after years of tension over repeated interventions by the Swiss central bank to curb the strength of the franc, which often rises due to the country’s status as a safe haven for investors.
Last June, Switzerland was placed on the US Treasury’s currency watchlist for practices considered manipulative, a criticism also voiced by Donald Trump during his first term.
This year, the Swiss franc has surged again, partly in response to tariffs imposed by the Trump administration.
