Live and Historical EUR/CHF Rates

The following chart represents the value of the Euro against the Swiss Franc (CHF) – how many franks can purchase one Euro. Since the Euro came into circulation, the Swiss frank mostly followed the movement of the Euro because of Switzerland’s close geographic and economic ties with the Eurozone. Both are major currencies, but EUR/CHF is not a major pair.

The Euro

The Euro made its debut in 1999, and 327 million people in 21 countries use the Euro as their currency. The Euro is the currency of the world’s largest economy: the Eurozone. However, the dollar still has a larger reserve currency and is traded more than the Euro. The European Central Bank (ECB) in Frankfurt, controls the Euro, but with a comparatively less controlling approach than the American Fed, for instance. The currencies of 23 countries, over 50% of which are in Africa, are pegged to the Euro. The Euro is strongly impacted by finance, services, and manufacturing.

The Swiss Franc

Switzerland is one of the most wealthy and stable economies in the world. The Swiss National Bank issues the Swiss frank as the currency of Switzerland and Liechtenstein. It is the last franc currency issued by a European country. Until 1850, various foreign currencies circulated in Switzerland. In 1945, the Swiss franc was pegged to the US dollar, and until 2000, 40% of the frank’s value was backed by gold. The Swiss franc has followed the movement of the Euro as it competes with the US dollar.  The Swiss franc is a very stable currency but accounts for only one percent of foreign exchange reserves.  The Swiss economy depends largely on banking (especially with foreign investors), industry, and trade.

EURCHF Analysis

Although Switzerland rejected the Euro as their currency, the Swiss government has worked closely in bilateral agreements with the EU. Significant EU investment in Swiss banks also contributes to the Swiss Frank following the ups and downs of the Euro. Both economies depend primarily on manufacturing and service. The close economic ties, similar economies, and stability of the Eurozone and Switzerland makes the EUR/CHF pair an unlikely candidate for carry trades.

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