Swiss Franc
- Country: Switzerland
- Currency: Franc
- Alias: Swiss franc
- ISO 4217 CODES: CHF/756
- Symbol: SwF
The Swiss Franc is the national currency of Switzerland and Liechtenstein. The “CH” portion of its International Standards Organization code of “CHF” stems from the initials for Switzerland’s Latin name, “Confoederatio Helvetica,” meaning Swiss Confederation. In modern history, the Swiss Franc has served as a major unifying factor for a unique European country which boasts French, Italian and German heritage. In spite of the fact that many of its neighboring nations have joined the European Union and adopted the euro, Switzerland remains a non-member as is firmly committed to holding onto the Swiss franc as its national currency.
Background of the Swiss Franc
Swiss francs – “Schweizerfranken” – date back to the Helvetic Republic (1798-1803), when for the first time, all of Switzerland’s money was minted and printed in a central location, versus in separate cantons.
The Swiss Franc is issued by the Swiss National Bank in Geneva – a city that has served as a major worldwide banking center for over 200 years. Switzerland has a long history of independence, sound fiscal policies and political neutrality. As a result, the Swiss franc is a well-managed currency, and some consider it to be the most inflation-resistant currency in the world, and many governments around the world hold Swiss francs as a reserve currency. Unlike the currencies of many other industrialized nations, the Swiss franc is still backed by gold reserves. In fact, Switzerland has the fourth largest gold reserves in the world behind the collective European Union countries, the International Monetary Fund and the United States of America.
Switzerland has always exhibited a great degree of autonomy. While some historians have questioned the authenticity of Switzerland’s proclaimed neutrality during World Wars I and II, the Swiss government has always remained somewhat skeptical of joining in economic and political alliances. Switzerland didn’t become a full member of the United Nations until 2002, and it has resisted becoming a full member the European Union.
From a currency exchange standpoint, the Swiss franc is not pegged directly to the euro, but it tends to move in parallel with the euro.
The Swiss Franc is divided into 100 centimes (also known as Rappen in German). Denominations for coins are 5 centimes, 10 centimes, 20 centimes, 50 centimes, 1 franc, 2 francs and 5 francs. Denominations for banknotes are 10 francs, 20 francs, 50 francs,100 francs, 500 francs and 1,000 francs.
