The amount of money that flows between the United Kingdom and Switzerland regularly is considerable. In 2016, over U.S. $66 million was sent as remittances from the UK to Switzerland. In the same year, around U.S. $43 million made its way in the opposite direction. Bilateral trade of goods and services between both regions accounted for aou0rnd £34.7 billion in 2016.
The GBP/CHF currency pair was the 15th most liquid currency pair globally in January 2018, accounting for around 2.06% of the total market share.
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The use of the pound as a form of currency dates back to Medieval England in 775 AD. This makes it the oldest currency in the world that still remains in circulation. Other than the UK, use of the pound sterling is also seen in the Isle of Man, Guernsey, Jersey, Tristan da Cunha, the British Antarctic Territory, as well as South Georgia and the South Sandwich Islands.
The pound sterling lost its long standing spot as the world’s leading reserve currency because of the impact both the World Wars had on the region’s economy. It is currently the world’s fourth most favored reserve currency.
The pound sterling’s share in the global forex market turnover was 12.8% in April 2016, making it the world’s fourth most commonly traded currency.
|Nicknames||Quid, pound, bread, moolah, nicker, bones, |
dough, readies, folding stuff, paper
|Bank notes||GBP 1, GBP 5, GBP 10, GBP 50, GBP 100|
|Coins||1p, 2p, 5p, 10p, 20p, 50p, GBP 1, GBP 2|
The Swiss Franc
Switzerland adopted the Swiss Franc as its official currency in 1850. At that point, the Swiss franc traded at par with the French franc. In 1865, Switzerland became a part of the Latin Monetary Union, which also included France, Belgium, and Italy. The Swiss franc’s exclusive use in Switzerland began in 1926. Switzerland was part of the Bretton Woods exchange rate system from 1945 to the early 1970s. The link between the Swiss franc’s exchange rate and gold remained in place until May 2000.
The global forex market turnover share of the Swiss Franc in April 2016 was 4.8%, which made it the world’s seventh most commonly traded currency. While the Swiss franc has long displayed signs of prudence and conservatism, its use as a reserve currency remains uncommon.
Outside of Switzerland, the Swiss franc is used in Liechtenstein and Campione d’Italia.
|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
Pound Sterling / Swiss Franc Historical Rates
The pound sterling saw a significant decline in value against the Swiss franc during the 1970s. In early 1971, the Swiss franc traded at over SFr 10 against the pound sterling. Toward the end of 1978, it was trading at slightly over SFr 4 against the pound sterling. From then, until early 1981, the pound sterling’s value saw a revival of sorts. In January 1981, the Swiss franc traded at over SFr 4.5 against the pound.
The relief was short-lived and the pound began to almost steadily lose value against the Swiss Franc going forward. In the end of 1985, the Swiss franc traded at below SFr 3 against the pound for the first time. In early 1995, it traded at below SFr 2 against the pound. From then until late 2008, the Swiss franc’s value hovered largely in between SFr 1.85 and SFr 2.7 against the pound.
After a period of a gradual rise in value, the Swiss franc traded at under SFr 1.5 against the pound in late 2010. Switzerland’s decision to cap the franc’s appreciation by setting a minimum exchange rate of SFr 1.2 against the euro in September 2011 did not have much on a long-term effect on the GBP/CHF currency pair. The Swiss franc’s peg to the euro was done away with in January 2015.
Since then, the value of the Swiss franc has fluctuated between SFr 1.2 and SFr 1.55 against the pound sterling.
GBP/CHF in the last five years
|GBP 1 =|
|1 July, 2013||SFr 1.4087|
|1 July, 2014||SFr 1.5344|
|1 July, 2015||SFr 1.5093|
|1 July, 2016||SFr 1.2820|
|1 July, 2017||SFr 1.2778|
GBP/CHF in the last five months
|GBP 1 =|
|1 April, 2018||SFr 1.3644|
|1 May, 2018||SFr 1.3112|
|1 June, 2018||SFr 1.3086|
|1 July, 2018||SFr 1.2999|
|1 August, 2018||SFr 1.2559|
What Affects GBP/CHF Rates?
Given the continued uncertainty surrounding the impact of Brexit, slight volatility in the GBP/CHF currency pair is likely to go on. While most of Switzerland’s monetary policies are in line with those of its European Union neighbors, its choice as a favored destination for expatriated capital make it less sensitive to their economic performance, which works well for the Swiss franc.
With the government of Switzerland maintaining largely consistent economic policies, and with the Swiss franc’s reputation as a liquid currency that is stable, one of the main factors that affect its exchange rate is interest rate changes implemented by the Swiss National Bank (SNB). Some of the other factors that may have a bearing on how the GBP/CHF currency pair performs include policy changes, gross domestic product (GDP), inflation, trade balances, and industrial production of both regions.
If you send money from the UK to Switzerland or from Switzerland to the UK, pay close attention to the GBP/CHF exchange rate that applies on your transfer. What you also need to take into account is the fees you end up paying.