Swiss Franc (CHF)
The Swiss Franc is considered a classic safe-haven currency, backed by Switzerland's long-standing political stability and low inflation. It is the only franc still issued in Europe.
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A short history of the Swiss Franc
The Swiss franc dates to 1850, when the young federal state standardized the coins that cantons had minted separately for centuries. Switzerland's formula for the currency was always the same: political neutrality, hard money and a central bank legally obliged to keep price stability first.
That formula made the franc the world's classic safe haven — it strengthened through the oil shocks, the eurozone debt crisis and the 2008 crash. The most dramatic chapter came on 15 January 2015, when the Swiss National Bank abruptly abandoned its 1.20 floor against the euro; EUR/CHF collapsed about 20% in minutes, one of the largest currency moves in modern history.
What moves the CHF exchange rate
The franc trades less on Swiss growth (the economy is famously steady) and more on fear and the Swiss National Bank.
- Global risk sentiment: European crises in particular push money into francs — geographically close, politically neutral
- SNB policy: the bank uses both interest rates and direct currency interventions, and it does not hesitate to act against unwanted strength
- Inflation: Swiss inflation has been the lowest in Europe through the recent cycle, reinforcing the hard-money reputation
- The eurozone: because half of Swiss trade is with the EU, EUR/CHF is the pair the SNB watches most closely
The Swiss Franc in practice
Switzerland is expensive, and the franc is why. Cards and contactless work everywhere; cash still circulates more than in the Nordics, and the banknotes are famously durable and recently redesigned. Travelers from eurozone neighbors often pay in euros at the border regions, but the exchange rate offered is rarely favorable — always choose the local currency.
For salaries and savings, the franc is what it has always been: the region's storage of value. For remittance, Switzerland is one of the most expensive corridors in Europe — the markup gap between banks and specialist services is unusually wide, so comparing providers is especially important.
Popular Swiss Franc conversions
EUR/CHF is the structurally most important pair — the SNB has repeatedly shaped it, from the 2011–2015 floor to the interventions since. USD/CHF is the global risk gauge for the franc, and GBP/CHF and CHF/AED serve wealthy corridors and expat salaries.
Frequently asked questions
Why is the Swiss Franc a safe haven?
Neutrality, deep and stable financial markets, low inflation, a current-account surplus and a central bank with a legal mandate for stability. In a crisis, capital goes where it expects to be left alone.
What happened in January 2015?
The SNB had capped the franc at 1.20 per euro since 2011, buying unlimited foreign currency to defend it. When keeping the cap became too expensive, it scrapped the floor without warning — the franc jumped about 20% in minutes, bankrupting brokers and funds worldwide.
Why does the SNB intervene in currency markets?
Switzerland is a small, open, exporting economy. An overly strong franc crushes exporters and pulls inflation below zero, so the SNB buys foreign currency to smooth the moves — one of the few major banks that intervenes against its own currency's strength.