The need to send money from the European Union (EU) to Switzerland or in the opposite direction is not uncommon. In 2016, more than U.S. $1.91 billion made its way from Switzerland to France as remittances, and over U.S. $1.46 billion was sent from Switzerland to Germany. In the same year, over U.S. $790 million was sent from Italy to Switzerland.
Bilateral trade to goods between the European Union and Switzerland accounted for over €150 billion in 2017.
The EUR/CHF cross pair is fairly popular in the international forex market. It is the third most commonly traded cross pair in the forex market according to the International Bank of Settlements. Its daily trade volume stands at around U.S. $44 billion. In January 2018, it was the 14th most liquid currency pair, accounting for around 2.08% of the total market share.
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The euro is the second most commonly traded currency in the world. It is also the second most dominant reserve currency globally. The euro’s share in the international forex market turnover was 31.4% in April 2016.
While the name of the currency was adopted in December 1995, the euro was declared as the official currency of the EU on 1 January, 1999. Circulation of euro-denominated coins and banknotes began three years later, in January 2002.
Not all member states of the EU have adopted the euro. Ones that have include:
The use of the euro is also found in the Vatican, San Marino, Monaco, Andorra, Montenegro, and Kosovo. Cuba adopted the euro as a trading currency in 1998, followed by Syria in 2006.
|Nicknames||Quid, aereo, pavo, ege|
|Bank notes||EUR 5, EUR 10, EUR 20, EUR 50, |
EUR 100, EUR 200, EUR 500
|Coins||1c, 2c, 5c, 10c, 20c, 50c, EUR 1, EUR 2|
The Swiss Franc
The Swiss franc was introduced in 1850, at par with the French franc. Switzerland joined the Latin Monetary Union in 1865, which included Italy, France, and Belgium. In 1926, the Swiss franc became the exclusive currency of Switzerland. From 1945 to the early 1970s, the Swiss Franc was part of the Bretton Woods exchange rate system. Its exchange rate was linked to the value of gold until May 2000.
In April 2016, the Swiss franc’s share of the international forex market turnover was 4.8%, making it the seventh most commonly traded currency globally. Other the Switzerland, use of the Swiss franc is found in Campione d’Italia and Liechtenstein.
|Currency Symbol||Fr. SFr|
|Bank notes||SFr 10, SFr 20, SFr 50, SFr 100, |
SFr 200, SFr 1,000
|Coins||5 Rp, 10 Rp, 20 Rp, SFr 1/2, SFr 1, |
SFr 2, SFr 5
Euro / Swiss Franc Historical Rates
From the introduction of the euro in 1999 to mid 2008, the EUR/CHF currency pair maintained relative stability. During this period, the Swiss franc traded largely in between SFr 1.45 and SFr 1.68 against the euro.
Evidence of the Swiss franc working as a safe haven currency came to the fore after the 2008 global financial crisis. The value of the Swiss franc increased from around SFr 1.52 against the euro in September 2008 to around SFr 1.13 against the euro in July 2011.
The Swiss National Bank (SNB) decided to peg the value of the Swiss franc to the euro in September 2011, with a cap of SFr 1.20 to the euro. This move caused the EUR/CHF currency pair to fluctuate very little until January 2015, at which point Switzerland ended the franc’s peg to the euro. From January to April 2015, the Swiss franc was trading almost at par against the euro.
Since then, the value of the Swiss franc has fluctuated largely between SFr 1.04 and SFr 1.20 against the euro.
EUR/CHF in the last five years
|EUR 1 =|
|1 July, 2013||NZ $1.6661|
|1 July, 2014||NZ $1.5750|
|1 July, 2015||NZ $1.6667|
|1 July, 2016||NZ $1.5502|
|1 July, 2017||NZ $1.5758|
EUR/CHF in the last five months
|EUR 1 =|
|1 April, 2018||NZ $1.7176|
|1 May, 2018||NZ $1.6704|
|1 June, 2018||NZ $1.7270|
|1 July, 2018||NZ $1.7149|
|1 August 2018||NZ $1.7516|
What Affects EUR/CHF Rates?
The Swiss franc, as a free floating currency, has displayed considerable stability against the euro since the removal of the peg in 2015. The EUR/CHF currency pair maintains a strong negative correlation with the USD/CHF currency pair, which reflects a similar relationship between the Swiss franc and the euro. This is primarily because of the dependence of the Swiss economy on economies of the Eurozone.
The economic relationship that Switzerland maintains with its Eurozone neighbors began with the establishment of the 1972 free trade agreement, which was followed with scores of other bilateral agreements. As a result, if the economy of the Eurozone suffers, Switzerland tends to feel its adverse effects.
If you wish to send money from any part of the European Union to Switzerland or the other way around, pay close attention to the existing EUR/CHF exchange rate. Then, compare it with rates offered by some of the top overseas money transfer companies, while also looking at the fees you will need to pay.