Description
Introduced in 1850, the Swiss franc (CHF) is the official currency of Switzerland, Liechtenstein and the Italian exclave of Campione d'Italia, and is the only franc remaining in Europe.
The central bank of Switzerland, Swiss National Bank (SNB), issues the Swiss franc banknotes, which come in six denominations: 10 francs, 20 francs, 50 francs, 100 francs, 200 francs and 1,000 francs. CHF is subdivided into 100 units, with a hundredth of the Swiss franc called Rappen (Rp.) in German, centime (c.) in French, centesimo (ct.) in Italian, and rap (rp.) in Romansh. Swiss franc coins are issued by the federal mint, called Swissmint, in seven denominations: 5 centimes, 10 centimes, 20 centimes, 1⁄2 franc, 1 franc, 2 francs, 5 francs.
The Swiss franc, ranked as the seventh most traded currency in the world, has gained in popularity mainly due to being a safe-haven currency. Therefore, many governments and financial institutions hold CHF as a hedge against instability in many types of investments and markets.
Economy
- Switzerland has one of the most advanced free market economies in the world, with the service sector accounting for almost 74 percent of the total gross domestic product (GDP).
- In 2020, Switzerland ranked as the 18th largest national economy by nominal GDP, with the country’s GDP being estimated at almost US$750 billion.
- The service sector plays a vital role in Switzerland’s economy, especially the Swiss banking industry and tourism.
- In 2016, it was reported that Switzerland was the world’s third richest landlocked country, next to Liechtenstein and Luxembourg.
- Export products include agricultural products, metals, chemicals, watches and machinery.
- Import products are vehicles, metals, textiles, machinery and agricultural products.
- Approximately 28 percent of all offshore funds are banked in Switzerland.
- The country is neutral and not part of the European Union or EEA. It is, however, a part of the single market and has a number of bilateral treaties with the EU.
- Switzerland’s inflation has been relatively low over the years, amounting to 0.4 percent in 2019.
History
- In 1798, the franc was introduced and used until 1803 along with other foreign currencies, with over 8,000 different coins and banknotes in circulation.
- In 1848, Switzerland declared that the federal government of Switzerland would be the official issuer of money in the country.
- In 1850, under the Federal Coinage Act, the first Swiss franc was introduced, as the monetary unit of Switzerland, at par with the French franc.
- In 1865, Switzerland became part of the Latin Monetary Union, along with France, Italy, Switzerland, and Belgium, under which they agreed to adopt the gold standard, legally maintaining it until 2000.
- In 1945, Switzerland decided to become part of the Brent Wood System. The Swiss franc was pegged to the US dollar.
- From 2003 to 2006, the Swiss franc was stable against the euro (EUR).
- In 2015, the Swiss National Bank suddenly abandoned its peg to the euro and allowed the currency to float, causing major damage on stock and forex markets with some investors and firms being wiped out as a result of the huge sell-off.
Trivia
- The ‘swissie’ is a nickname for the Swiss franc.
- Four national languages of Switzerland, such as Germany, Romansh, French and Italian, are featured on all Swiss franc banknotes.
FAQs
US Dollars to Swiss Francs: exchange rates today
| USD | CHF |
|---|
| 100 USD | 91.34 CHF |
| 250 USD | 228.37 CHF |
| 300 USD | 274.04 CHF |
| 500 USD | 456.74 CHF |
8 more rows1 CHF = 1.084847 USD May 26, 2024 09:05 UTC
Check the currency rates against all the world currencies here.
Is USDCHF a buy or sell? ›
The Barchart Technical Opinion rating is a 72% Buy with a Average short term outlook on maintaining the current direction.
Why is CHF so strong? ›
- Its long-term value is tied to the long-term strength and stability of the Swiss economy. This is one of the most important economies in the world. - The country has a long history of hard assets, including gold reserves. Investors know that the Swiss franc is tied to hard assets.
How much is a cup of coffee in Switzerland? ›
Coffee in Switzerland
A regular cappuccino will set you back, on average, CHF 4.70. This goes up to CHF 5 in Zurich – much more expensive than other European capital cities such as London, Paris, and Berlin.
How much does a meal cost in Switzerland? ›
Going out to eat in most places in Switzerland can easily cost around 50 USD per person per meal, so grocery shopping in Switzerland is an absolute must. Cooking meals at your accommodation, or simply buying food that doesn't need to be cooked can save you literally hundreds of dollars a day when visiting Switzerland.
Is CHF stronger than dollar? ›
Swiss franc
The Swiss franc or CHF is the national currency of both Switzerland and Liechtenstein. 1 US dollar will buy your around 0.98 Swiss Franc, so the Swiss franc comes in as the first currency to be higher value than the US dollar.
What is the 3 strongest currency? ›
List of Highest Currencies in the World 2024
| Currency | Symbol | INR Value In Rs (As on May 2024) |
|---|
| Kuwaiti Dinar | 1 KWD | 271.36 |
| Bahraini Dinar | 1 BHD | 221.42 |
| Omani Rial | 1 OMR | 216.86 |
| Jordanian Dinar | 1 JOD | 117.91 |
6 more rowsOver the past 10 years, the Swiss franc has gained value against most major currencies including US dollar. Discover what factors have pushed CHF higher and what's in store for 2024.
Why is CHF dropping? ›
The Swiss Franc selloff accelerated following the release of a below-consensus inflation report that raised the odds of further interest rate cuts from the Swiss National Bank (SNB).
Overall, we expect the Swiss franc to lose some of its previous strength in 2024. Our three-month forecast for the EUR/CHF rate is CHF0. 95 and our 12-month forecast is CHF0. 99.
Why is CHF weakening? ›
“The key point is that they are cutting rates over FX interventions to weaken the CHF. The rhetoric from the SNB has evolved to recognize the adverse effects of a strong real effective exchange rate on the Swiss economy. This cut has the effect of weakening the CHF and supporting the economy.”
Why is CHF a safe haven? ›
Some examples of safe haven currencies include the U.S. dollar (USD), the Swiss franc (CHF), and the Japanese yen (JPY). 1 These currencies are considered safe havens because they have strong liquidity, relatively low inflation, and stable political systems.
What is the CHF prediction for 2024? ›
They have forecast that the EUR/CHF exchange rate will be 0.95 at the end of 2024, and expect the USD/CHF rate to be on average at 0.90 and the GBP/ CHF rate to stand at 1.10. However, currency forecasts are more widely spread than last year, particularly with regard to the USD/CHF exchange rate.
Is CHF going up? ›
The Swiss Franc is expected to trade at 0.91 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.92 in 12 months time.
Does Switzerland accept US dollars? ›
Some businesses, particularly in tourist hotspots, may accept US dollars. However, it's essential to remember that the exchange rates might not be as favorable as those at banks or official exchange counters.
Is food expensive in Switzerland? ›
Groceries in Switzerland may be more expensive than in your home country, particularly for meat and dairy. Expect to pay about CHF 15-25/kg for cheese, CHF 22/kg for ground beef, CHF 36/kg for chicken, CHF CHF 55-80/kg for steak (about $30-40/lb).
How expensive is Switzerland in US dollars? ›
A single person estimated monthly costs are 1,635.3$ (1,492.8Fr.) without rent. Cost of living in Switzerland is, on average, 42.5% higher than in United States. Rent in Switzerland is, on average, 11.9% higher than in United States.
How much is a trip to Switzerland in US dollars? ›
On average, a round-trip ticket from the United States to Switzerland can range from $800 to $1500 per person. Next up, accommodation. The cost of lodging can vary depending on your preferences. For budget-conscious travelers, a night in a hostel or budget hotel can range from $50 to $100.
