6. Swiss Francs in the Global Exchange Markets
Published Online: 28 SEP 2012
Copyright © 2013 Henri B. Meier, John E. Marthinsen, and Pascal A. Gantenbein. All rights reserved.
Swiss Finance: Capital Markets, Banking, and the Swiss Value Chain
How to Cite
Meier, H. B., Marthinsen, J. E. and Gantenbein, P. A. (2012) Swiss Francs in the Global Exchange Markets, in Swiss Finance: Capital Markets, Banking, and the Swiss Value Chain, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118524114.ch6
- Published Online: 28 SEP 2012
- Published Print: 19 SEP 2012
Print ISBN: 9781118131268
Online ISBN: 9781118524114
- Bretton Woods;
- Euro and European Monetary Union;
- Nominal and real exchange rates;
- Safe-haven currency;
- Swiss franc
For almost 100 years, the Swiss franc's value in world markets has increased due to the will of Switzerland's public at large, as executed by the Swiss National Bank (SNB) and the national government. This chapter explains the double-edged sword that bestows benefits on some and burdens on others, and highlights key ingredients and determinants that have made the Swiss franc a safe-haven currency. It also explores the size, structure, and history of Switzerland's foreign exchange markets; details the crucial role played by the SNB; illuminates linkages among the Swiss franc, euro, gold, and U.S. dollar markets; and ends by discussing the sustainability of currency intervention and its effects on the nation's balance of payments.