Cross-border remittances take place between the U.S and Switzerland regularly. In 2016, around U.S. $79 million was sent from Switzerland to the U.S. In the same year, around U.S. $149 million was sent from the U.S. to Switzerland. These numbers do not account for business transactions between the two countries.
Trading of the Swiss franc is fairly common against the euro, and it is also traded against the U.S. frequently. While the Swiss franc is not as liquid as the pound sterling or the euro, it still remains an easy currency to trade. The USD/CHF currency pair is often referred to as Swissy in the forex market.
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The U.S. Dollar
The U.S. dollar has been the official currency of the United States since 1792. It is used as the official currency in the Caribbean, the Federated States of Micronesia, Ecuador, El Salvador, Turks and Caicos Islands, the British Virgin Islands, and two British Overseas Territories. Its use alongside other currencies is also prevalent in places such as Panama, Liberia, Haiti, Costa Rica, Belize, and Myanmar.
Data suggests that around U.S. $5.1 trillion passes through the forex market every day. The global forex market turnover share of the U.S. dollar was more than 87% in April 2016. It has maintained its position as the world’s most traded currency and its most favored reserve currency for some time now.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
The Swiss Franc
The Swiss franc, in its current form, has been in circulation since 1850. It also serves as legal tender in Liechtenstein and Campione d’Italia. Upon its introduction, the Swiss franc was at par with the French franc.
Switzerland, along with France, Italy, and Belgium, were part of the Latin Monetary Union from 1865 to the 1920s, and their currencies were linked to the price of silver. The Swiss Franc was part of the Bretton Woods exchange rate system until the early 1970s, and its exchange rate was linked to gold until May 2000.
The global forex market turnover share of the Swiss franc was just under 5% in April 2016.
|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
U.S. Dollar / Swiss Franc Historical Rates
The USD/CHF currency pair has displayed considerable stability over time. The monetary policies of Switzerland coupled with its cautious reputation have led to the Swiss franc being regarded as a popular safe haven currency. This means that the franc tends to appreciate in times of high volatility or market stress. On the other hand, you can expect the Swiss franc to underperform in less volatile times.
While increased volatility typically causes the franc to appreciate, forecasting how it will perform against the U.S. dollar is a challenge because the latter is regarded as a safe haven currency as well.
The Swiss franc appreciated against most major currencies during the Great Depression. Since the currency’s strength began affecting the country’s economy adversely, the Swiss National Bank (SNB) had to intervene. However, even after the intervention the franc gave way in 2014, devaluing by more than 25% in a matter of minutes.
Switzerland’s government unpegging the franc from the euro in 2015 resulted in another blip, mainly because the franc was not limited to small cap gain or losses anymore. It has, since then, achieved a sense of stability.
The USD/CHF pair usually has a negative correlation with the USD/GBP and USF/EUR pairs because of the positive correlation between the pound sterling, the euro, and the Swiss franc.
USD/CHF in the last five years
|U.S. $1 =|
|1 July, 2013||SFr 0.9361|
|1 July, 2014||SFr 0.8959|
|1 July, 2015||SFr 0.9442|
|1 July, 2016||SFr 0.9661|
|1 July, 2017||SFr 0.9646|
USD/CHF in the last five months
|U.S. $1 =|
|1 Feb, 2018||SFr 0.9121|
|1 March, 2018||SFr 0.9089|
|1 April, 2018||SFr 0.9544|
|1 May, 2018||SFr 0.9478|
|1 June, 2018||SFr 0.9550|
What Affects USD/CHF Rates?
Factors that affect the value of the U.S. dollar and the Swiss franc also have a bearing on USD/CHF exchange rates. For example, the interest rate differential between the Swiss National Bank and the U.S. Federal Reserve has an effect on the value of both currencies in comparison to each other. If Switzerland decides to peg the Swiss franc to another currency such as the U.S. dollar or the pound sterling, it might result in spikes or drops in exchange rates.
The relative stability of the USD/CHF currency pair makes it easy for people who wish to transfer money between the U.S. and Switzerland. However, not all overseas money transfer companies provide the same exchange rates, so it is best that you compare your options well.