THE FRANC – THE SAFEST AND MOST STABLE CURRENCY IN THE WORLD
Here you can buy the Swiss franc or convert amounts based on the current exchange rate between the euro and the franc.
According to Countryaah, the Swiss franc (CHF) is the official currency of Switzerland, the Principality of Liechtenstein and the Italian exclave Campione d’Italia. Unofficially, the currency is also used in the German exclave of Büsingen on the Upper Rhine instead of the euro. Surrounded by the euro currency area, Switzerland is one of the last great foreign currency enclaves in Europe, where money still has to be exchanged. The Swiss franc is considered to be a particularly stable and crisis-proof currency, which has become increasingly important for investors, especially in the 2010s.
IN THE BEGINNING THERE WAS THE COIN CHAOS
Until Switzerland was founded as a federal state, there were different minters who minted money and numerous foreign currencies that were in circulation. This coin chaos ended in 1848, when the right to mint coins was granted to the federal government alone and the first Swiss francs were produced from 1850. The foreign currencies, mainly from France, Italy and Belgium, were still used and were recognized as a means of payment. The close connection between the four countries culminated in the Latin Monetary Union in 1865: all coins within the Union had to be accepted at face value and comply with certain regulations regarding weight, fineness and shape. The Union formally remained in force until 1926 and numerous states have joined it over the years.
COINS AND BANKNOTES WITH A CULTURAL AND HISTORICAL BACKGROUND
The Latin name of Switzerland, “Confoederatio Helvetica”, can be found on all Swiss francs. The oldest still valid coins are the 10 centimes, which have had the same motif since 1879 and are minted with the same alloy. The head of Libertas, the Greek goddess of freedom, is depicted on the 5, 10 and 20 centimes coins. A portrait of the standing Helvetia, the symbol for Switzerland, is stamped on the ½, 1 and 2 franc coins. After all, the 5-franc coin depicts an Alpine herdsman who is often interpreted as the Swiss national hero Wilhelm Tell.
The bills show the portraits of historical people who have made an important contribution to Swiss culture through their work in art, music, architecture or literature. The 1000-franc note, the most valuable banknote in the world that is in free circulation, has been issued since 1907. In terms of its exchange rate to other currencies, it has the highest purchasing power. The portrait of the cultural and art historian Jacob Burckhardt is depicted on the 1000-franc note, while the back adorns part of the facade of the Florentine Palazzo Strozzi. Colloquially, the franc is also called “Stutz”, named after the well-known Swiss mint master Conrad Stutz.
RUN ON THE 1,000 FRANC NOTE
In the course of the euro crisis and the US national debt, the demand for Swiss francs increased massively. In order to counteract the resulting overvaluation of the Swiss currency, the Swiss National Bank (SNB) decided in 2011 to set a minimum exchange rate of 1.20 francs per euro. In January 2015, the SNB lifted the minimum exchange rate without warning and increased the negative interest rate. The goal of stopping the currency’s overvaluation had been achieved. However, the repeal plunged many foreign investors, forex traders and borrowers into crisis. The currency shock also had a negative impact on the Swiss economy, but there was no serious recession. Since the “franc shock” there has been a run on the 1,000 franc note.
BUY SWISS FRANCS ONLINE
You can also conveniently buy the Swiss franc and other currencies via the XE currency shop. Use the XE’s currency converter to display the current exchange rate between euros and francs and order your travel money online. The currencies you buy from us will then be delivered to your home within a few days. In addition, you can still change francs in the XE branches.
THE CURRENCY AT A GLANCE
1 Swiss franc = 100 cents. Currency abbreviation: sfr, CHF (ISO code). There are banknotes in denominations of 1000, 200, 100, 50, 20 and 10 sfr; Coins are in circulation with a value of 5, 2, 1 and 1/2 sfr as well as 20, 10 and 5 cents. A new series of notes is planned for the period 2016 to 2019.
FOREIGN EXCHANGE REGULATIONS