Swiss Franc

Overview

The official currency of Switzerland is the Swiss Franc (CHF). The Swiss Franc is the only Franc still issued in the European countries. The Franc is subdivided into 100 centimes. The symbol used for the Franc is Fr. Banknotes are issued by the Swiss National Bank and coins are issued by the Swiss Mint.

Economy

• Switzerland’s economy is seen as a safe haven and is rated as the safest economy in the world.
• The economy is dependent on foreign investments.
• The unemployment rate is estimated at 3%.
• The main industries are watches, chemicals, textiles, machinery, and precision instruments.
• Export products are agricultural products, metals, chemicals, watches, and machinery.
• Import products are vehicles, metals, textiles, machinery, and agricultural products.
• Switzerland’s tourism infrastructure is highly developed.
• Approximately 28% of all offshore funds are banked in Switzerland.
• The country is neutral and is not part of the European Union.

History

• In 1848, Switzerland declared that the Federal Government of Switzerland will be the official issuer of the Swiss Franc.
• In 1850, the first Swiss Franc was introduced; it was on par with the French Franc.
• In 1865, Switzerland became part of the Latin Monetary Union, which consisted of France, Italy, Switzerland, and Belgium.
• Switzerland decided to become part of the Brent Wood System in 1945. The Franc was pegged to the US Dollar at 4.375 Francs = 1 USD.
• From 2003 to 2006, the Swiss Franc was stable against the Euro.
• In 2008, the Swiss Franc was valued higher than the USD.
• In 2010, the 9th series of Francs was introduced.
• In 2011, the European Union stated that the “Franc is a threat to the economy” and this caused the Franc to plunge.