Buy, Sell or Transfer Swiss Franc at the Best Rates in India

Swiss Franc (CHF) Overview

The Swiss Franc is Switzerland's official currency, identified by the ISO code CHF. It became the official currency of Switzerland in May 1850, replacing various other currencies issued by its different member states. The abbreviation CHF stands for Confoederatio Helvetica franc, with Confoederatio Helvetica being the Latin term for the Swiss Confederation. It remains the sole franc in circulation in Europe, as other countries that once used franc-denominated currencies have transitioned to the euro.

Swiss Franc Currency Facts

History of the Swiss Franc

The Swiss franc (CHF) has undergone significant changes, transitioning to a floating exchange rate system and establishing itself as a resilient and sought-after currency in the global economic landscape. Here is the historical overview of Swiss Franc currency:

1. Evolution of Swiss Currency

Until 1798, approximately 75 entities in Switzerland used to produce coins, resulting in 860 different types of currency with varying denominations, weights, and structures. These included coins from cities like Bern, Basel, Zurich, and Geneva.

2. Helvetic Republic's Monetary Changes

In 1798, the Helvetic Republic introduced a new monetary system based on the Berne thaler, equivalent to six grams and three-quarters of pure silver. This circulated until 1803, serving as a basis for currencies in several member states of the Reformed Swiss Confederation.

3. Federal Regulation and Introduction of the Swiss Franc

In 1848, the Swiss Federal Constitution mandated that only the federal government could issue currency. The first federal monetary law, enacted in 1850, defined the Swiss franc as the official monetary unit. It was introduced simultaneously with the French franc.

4. Switzerland's Participation in Monetary Unions

From 1865 to the 1920s, Switzerland, along with France, Belgium, and Italy, formed the Latin Monetary Union, linking their currencies to the value of silver. The Swiss franc was also part of the Bretton Woods exchange rate scheme after World War II, lasting until the early 1970s. Until May 2000, the CHF exchange rate was tied to the price of gold.

5. Swiss Franc Post-2000: A Floating Exchange Rate

After May 2000, Switzerland transitioned to a floating exchange rate system, decoupling the Swiss franc (CHF) from the price of gold. Unlike the previous fixed exchange rate regimes, the value of the Swiss franc became determined by market forces supply and demand in the foreign exchange market.

6. Ongoing Role and Influence

The Swiss National Bank (SNB) plays a key role in managing the Swiss franc's monetary policy. Over the years, they have consistently emphasized economic stability and prudent fiscal management, contributing to the Swiss franc's resilience in the international financial landscape.

7. CHF in the Global Economy

The Swiss franc has maintained its status as a key global currency. Its stability and reputation have contributed to the Swiss franc being considered a safe-haven currency, sought after by investors during times of economic uncertainty.

Significance of the Swiss Franc (CHF)

The Swiss Franc (CHF) holds a significant position in the global financial landscape due to the Swiss Central Bank's commitment to a zero-inflation policy and Switzerland's steadfast political independence. Known for its stability, the CHF became particularly strong during times of political and economic uncertainty, especially during the 2008 European debt crisis.

The Swiss franc is actively traded on both the foreign exchange and futures markets. While its most popular pairing is with the euro, it is also exchanged against major currencies such as the US dollar, the British pound, and the Japanese yen. Switzerland's low-interest rate environment attracts investors who leverage the CHF to borrow at lower rates, subsequently investing in higher-yielding assets and other global currencies.

Current Swiss Franc Notes & Coins

1. Issued by the Swiss National Bank (SNB), the Swiss Franc currency comes in both banknotes and coins.

2. One Swiss Franc is divided into 100 centimes, with coins available in denominations of 5, 10, and 20 centimes, ½ franc (50 centimes), 1, 2, and 5 francs. 

3. These coins, featuring Lady Liberty or iconic Swiss motifs, cater to smaller purchases and everyday transactions. 

4. Swiss Franc banknotes are printed on durable polymer which not only enhances longevity but also incorporates advanced security features to combat counterfeiting.

5. Current Swiss Franc banknotes come in 5 denominations: 10, 20, 50, 100, and 200 francs (1000 franc note discontinued).

6. Each denomination features a unique Swiss theme and prominent landmark, offering a visual journey through the country's diverse beauty.

7. The 1000-franc note, once the highest denomination, was discontinued in October 2023 due to limited use. 

8. The current 9th series, introduced between 2016 and 2019, also showcases a vibrant array of designs.

9. Advanced anti-counterfeiting elements like watermarks, holograms, and microprinting ensure the CHF's integrity.

How to Spot Counterfeit Swiss Franc Notes?

To distinguish genuine Swiss Franc notes from counterfeit ones, several key methods can be employed. For instance, authentic 100-franc notes have distinct raised lines along their edges. Under UV light, the genuine note displays a vibrant globe while maintaining a muted appearance elsewhere. Micro lettering on the Swiss flag becomes apparent when examined with a magnifying glass, featuring black writing on a white background and vice versa.

Tiny specks of color are visible under UV light which further confirms the authenticity of the note. When checked under an infrared lens, the banknote has a distinctive shift in appearance. Also, clear Swiss cross perforations are evident when holding the note up to the light. By using these ways, individuals can effectively spot counterfeit Swiss Franc notes and ensure the integrity of their currency.

How Do We Measure The Value Of CHF?

The measurement of the value of the Swiss Franc (CHF) is effectively conducted through the CHF Index, a valuable tool for assessing its relative strength against other currencies. This index serves as a comprehensive gauge, reflecting the performance of the CHF in comparison to a basket of other major currencies. 

What is the Swiss Franc Index (CHFX)?

The CHF Index offers a clear perspective on the performance of the Swiss Franc, providing valuable insights into its relative value against a diverse range of international currencies. This tool proves crucial for traders, policymakers, and analysts seeking a comprehensive understanding of the CHF’s performance against other currencies.

Here are a few key points about the Swiss Franc Index:

1. The CHF Index considers a diverse basket of major currencies, offering a well-rounded assessment of the CHF’s performance.

2. A rising CHF Index indicates a strengthening position of the Swiss Franc concerning the other currencies included in the index. 

3. This signifies a favorable trend, showcasing increased purchasing power and competitiveness in the global economic landscape. 

4. On the contrary, a declining CHF Index signals a weakening position of the CHF relative to the other currencies within the index. 

5. This scenario may imply reduced purchasing power and a diminished standing compared to its counterparts.

Benefits of Buying or Selling CHF with BookMyForex

You can buy or sell CHF online at the best rates with BookMyForex, a leading forex platform in India. On our site, you will find the live & transparent CHF rates as the rates get updated every 3 seconds. You get the following benefits when buying or selling CHF: 

1. BookMyForex offers the best rate for CHF to INR, or vice versa

2. You can place your order online 24x7 at live rates

3. Rates are compared across hundreds of money changers in your area

4. Same-day delivery of CHF currency notes is available

5. Freeze your desired rates for up to 3 days by paying a refundable deposit of 2%