The USDCHF, also known as the swissie is the fifth most traded currency in the Forex market. It is considered to a safe haven pair due to its stability and neutral character of Switzerland and is a reserve currency used by markets worldwide.
The Swiss Franc is the last Franc still in issuance in Europe. CHF is shorthand for ‘Confoederatio Helvetica’ Franc, and represents the economy of the neutral nation situation in the center of Europe. Switzerland has long been a key banking center for customers around the world, and the secrecy with which they maintain their banking operations has made them one of the more desirable locations for storing cash. This has helped to bring considerable strength to the Swiss Franc, pressuring exporters from the nation. When the European Debt Crisis enveloped the continent, massive inflows into Swiss Francs made the situation worse until eventually the Swiss National Bank (SNB) created a peg to the Euro at a rate of 1.2 Swiss Francs for every 1 Euro. If the EURCHF currency pair fell below 1.20, the SNB proposed to sell CHF and buy EUR to support the 1.20 floor.
- Name: Swiss Franc
- Symbol: CHF Rappen: Rp.
- Minor Unit: 1/100 = Rappen
- Central Bank Rate: -0.75
- Inflation: 0.50%
- Nicknames: Stutz, Stei, Eier (Swiss), Chuffs
- Coins: Freq Used: CHF1, CHF2, CHF5, 5Rp., 10Rp., 20Rp., 50Rp.
- Banknotes: Freq Used: CHF10, CHF20, CHF50, CHF100, CHF200, CHF1000
- Central Bank: Swiss National Bank, Website: snb.ch
Importance of the Swiss Franc
The Swiss Franc has a reputation for being a safe haven or hard currency; it is often purchased during financial uncertainty due to its reliability and stability. Regularly used as a global reserve currency, the Swiss Franc is the sixth most traded currency in the world. All CHF banknotes feature the four national languages of Switzerland: Germany, Romansh, French, and Italian.
Brief History of Swiss Franc
Prior to the Helvetic Republic, over 860 different coins circulated in Switzerland. In 1798, the Franc currency was introduced and used until 1803 along with a number of foreign currencies. During this time, there was a complex currency system comprising over 8,000 different coins and banknotes in circulation. Under the Federal Coinage Act, all currencies were replaced by the Swiss Franc, which was introduced at par with the French Franc in 1850. Switzerland adopted the gold standard in 1865 as a member of the Latin Monetary Union, legally maintaining it until 2000.