WCURRENCY

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Overview

The Swiss Franc (CHF) is the official currency of Switzerland and Liechtenstein and one of the world's most stable and trusted currencies. Often called a safe-haven currency, the franc attracts global capital during periods of economic or geopolitical uncertainty. Switzerland's political neutrality, sound fiscal policy, and strong banking sector underpin the franc's exceptional reputation.

Despite Switzerland not being a member of the EU, the CHF maintains a close relationship with the euro due to deep trade ties. The franc is fully convertible and freely traded on global foreign exchange markets.

History

The Swiss Franc was introduced in 1850, replacing a chaotic mix of cantonal currencies. Switzerland adopted the gold standard and joined the Latin Monetary Union in 1865 alongside France, Belgium, and Italy. The franc survived both World Wars without devaluation, cementing its reputation for stability.

In 1973 Switzerland left the Bretton Woods fixed exchange rate system. A landmark moment came in January 2015, when the Swiss National Bank (SNB) unexpectedly abandoned its EUR/CHF floor of 1.20 — causing the franc to surge nearly 20% in minutes, shocking global markets. Today the CHF remains among the most valued currencies per unit in the world.

Swiss National Bank

The Swiss National Bank (SNB), founded in 1907, is one of the world's most unique central banks. It is structured as a joint-stock company — shares are publicly traded on the Swiss Exchange (SIX), with cantons, cantonal banks, and private investors as shareholders. Its primary mandate is price stability, defined as inflation below 2%.

The SNB holds one of the world's largest foreign exchange reserves relative to GDP (over 700 billion CHF), accumulated through decades of currency interventions to prevent excessive franc appreciation. It is known for unconventional monetary policy, including negative interest rates (introduced in 2015, ended in 2022) and large-scale asset purchases.

Key Facts

• The CHF is the sixth most traded currency in the world by daily forex volume.
• Swiss banknotes are considered the most beautiful in the world — they are horizontal in design and feature cultural figures rather than politicians.
• The 1000 CHF note is one of the highest-denomination banknotes in regular circulation globally.
• In 2015, the SNB "floor removal" event (Black Thursday) caused EUR/CHF to drop from 1.20 to nearly parity in seconds — one of the largest intraday moves in forex history.
• Switzerland is not in the EU or the eurozone, yet ~70% of its exports go to European countries.
• The CHF/gold correlation: Switzerland held 100% gold backing until 1999, when it sold off most reserves — still holds ~1040 tonnes today.

See also: EUR – Euro · USD – United States Dollar · Guide