Switzerland is back on the US Treasury Department currency watch list, one step shy of being labeled a currency manipulator. According to the 1988 Omnibus Foreign Trade and Competitiveness Act, the US Treasury Department has to conduct an annualized review to determine which country manipulates its currency to gain a competitive advantage against the US. The biggest drawback of being designated a currency manipulator by the US is the exclusion of US government procurement contracts. Updates are conducted every six months.

As developments around the trade war between the US and China are getting most of the media attention, a currency war is brewing underneath which could exacerbate the situation further. US President Trump insists that China and the EU are manipulating their respective currencies in order to maintain a trade advantage over the US. Reuters published an interview yesterday where Trump stated 'I think China’s manipulating their currency, absolutely.