Goldman Warns SNB Interventions Will Raise Red Flags in U.S.

The U.S. Treasury is likely to take note of the Swiss National Bank’s heavy foreign-exchange interventions this year as it compiles its watchlist for currency manipulators, according to Goldman Sachs Group Inc.

The semi-annual report is due soon, and “Switzerland’s exchange rate practices could come under closer scrutiny if the pandemic period is included in the analysis,” Goldman Sachs economist Michael Cahill wrote. “By our estimates, the SNB added over $40bn in the first few months of 2020, which would easily clear the bar.”