6. Swiss Francs in the Global Exchange Markets

  1. Henri B. Meier,
  2. John E. Marthinsen and
  3. Pascal A. Gantenbein

Published Online: 28 SEP 2012

DOI: 10.1002/9781118524114.ch6

Swiss Finance: Capital Markets, Banking, and the Swiss Value Chain

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

Publication History

  1. Published Online: 28 SEP 2012
  2. Published Print: 19 SEP 2012

ISBN Information

Print ISBN: 9781118131268

Online ISBN: 9781118524114

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Keywords:

  • Bretton Woods;
  • Euro and European Monetary Union;
  • Nominal and real exchange rates;
  • Safe-haven currency;
  • Swiss franc

Summary

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.