Swiss Franc

Description

Knowing the Swiss Franc

Knowing Switzerland can bring to mind thoughts of beauty from mountains and sweets from chocolates and technology in watches, and also about stable things. But do you know that even the Swiss Franc, the money of Switzerland, is famous for strength and reliability? If you want to learn more about the Swiss Franc, how it functions, and why it’s important, this simple article will tell you everything.

What is the Swiss Franc?

The Swiss Franc is the official currency of Switzerland and of the neighboring country of Liechtenstein. It’s symbol, “CHF,” is short for “Confoederatio Helvetica Franc” (the Latin name for Switzerland, used because the country’s four official languages). Sometimes it’ll be written as “Fr.” or just as “SFr.” People colloquially refer to it as the “Franc.” There are 100 smaller units into which one Franc can be divided, which are known as “Rappen” in German and “Centimes” in French.

Some Background Information

The history associated with the Swiss Franc dates back long ago to 1850 when it took the place and the space of various local currencies being circulated within Switzerland. The Franc has been associated with stability since Switzerland is pretty well known for a strong economy and well-organized banking systems, and neutral politics; hence, it has emerged as one of the trustworthy currencies in the world. Swiss Franc notes are highly colored and artistic. They can be found in denominations of 10, 20, 50, 100, 200 and 1000 Francs. On the front and back of each note famous Swiss personalities are portrayed as well as fine designs showing the culture and innovation in the country. Coins are of 5, 10, and 20 Rappen, as well as the 1, 2, and 5 Francs.

What Does the Swiss Franc Mean?

Swiss Franc notes are very colorful and artistic. One can find denominations such as 10, 20, 50, 100, 200, and 1000 Francs. Each of the notes features known Swiss personalities together with very attractive designs showing the culture and innovation in the country. They also have coins of 5, 10, as well as that of 20 Rappen; they have one-franc, two-franc coins, and five-franc coins. It is commonly referred to as the “safe haven” currency of Switzerland: an action caused by world problems (economic problems, wars, political changes, etc.) that leads people and investors to keep their money in Swiss Francs because it’s assumed Switzerland is a safe, well-managed, and neutral country.

Here is why it is important

• Stability: Swiss government and economy are very stable and so is the currency value.
• Inflation: Switzerland has low inflation, so prices don’t go up very quickly, which makes the Franc strong over time.
• Trust: The international community has trust in both Swiss banks and the Swiss currency. Thus, the Franc is famous for saving and using investments.

Use of the Swiss Franc

The Swiss Franc is used in everything in Switzerland and Liechtenstein, such as shopping, paying bills, and business. At times of uncertainty, many international companies and investors use Swiss Franc while trading as well as saving. Travel to Switzerland will require Francs for trains, food, hotels, and that famous Swiss chocolate bar!

Swiss Franc Exchange Rate

How much the Swiss Franc is worth in relation to other currencies such as the US Dollar or Euro is known as the exchange rate. The Swiss Central Bank–called the Swiss National Bank (SNB)—looks after Switzerland’s money. It watches how much the Franc is worth and sometimes does things to keep it from getting ‘too strong’. It does this because a very ‘strong’ Franc would make everything in Switzerland very expensive for tourists and people in other countries. Here are five fascinating facts about the Swiss Franc:

• Switzerland is an EU member, so it does not have the Euro as its currency.
• Most shops in Switzerland near the border will take Euros but give the change in Francs.
• it is one of the few currencies with a 1000-unit banknote (CHF 1,000).
• Swiss banknotes have some of the most advanced security features to stop them being copied.

Payments in Switzerland and the Franc

Just as in any other developed nation, the Swiss are embracing digital payments and cutting on cash usage. Nonetheless, the Franc holds a heavy footing both as a cash and electron money instrument.

Reasons Why the Swiss Franc Is World-Famous

Swiss Franc is a result of Switzerland’s prudent financial management and politically neutral and high standard of living. People invest across the globe and consider the Franc as a safety place of holding money, particularly during times of uncertainty. This trust helps to maintain the value of the Franc as well as keep it stable.

Conclusion

To the Swiss, the Swiss Franc is Not just money but much more-it is a symbol of trust, safety, and stability. Whether you are traveling within Switzerland, involved in international business or interested in global finance, it would be in your best interests to learn a little about the Swiss Franc to understand why such a small country wields such influence over the world’s money. The next time you see the CHF symbol or hold a Swiss banknote, you’ll know the story behind one of the world’s most respected currencies.