The Swiss National Bank (SNB) rejected the US Treasury's accusations of being a currency manipulator on Wednesday and said it would remain ready to “intensify its intervention in the foreign exchange market.”

“The SNB has taken note of the latest report published by the US Treasury on the monetary policy of the main trading partners of the United States (and the assessment concerning Switzerland),” the SNB wrote in a statement sent to Xinhua.

“The SNB and the Swiss authorities remain in contact with the American authorities in order to explain to them the economic situation and monetary policy in our country,” the statement added.

Earlier on Wednesday, the US Treasury called Switzerland a currency manipulator, suspecting the country of taking steps to devalue the Swiss currency against the greenback.

“Under no circumstances does Switzerland carry out monetary manipulations,” the SNB said, adding that “the SNB's interventions in the foreign exchange market are not aimed at preventing adjustments in the balance of payments or at obtaining an unjustified competitive advantage for the Swiss economy.”

“Swiss monetary policy needs these interventions to ensure appropriate monetary conditions and, by extension, price stability in Switzerland,” she stressed.

The SNB intensified its interventions in the foreign exchange market in the first half of this year, spending around 90 billion Swiss francs in an effort to contain the highly appreciated franc and reduce the impact of the pandemic on the economy.

This happened as the rush for safe haven currencies during the COVID-19 crisis pushed the franc to its highest level in five years against the euro.

The SNB said that its monetary policy approach would remain unchanged by the US report: “The report does not involve any change in the SNB's approach to monetary policy. Given the economic situation and the still high level of the franc, the SNB remains ready to step up its intervention in the foreign exchange market.

“Switzerland and the United States are important trading partners. We have excellent bilateral relations and regularly discuss economic and financial issues,” the bank said

The SNB will deliver its monetary policy assessment on Thursday.