Forex Walkthrough

AAA

Level 5 Economics - Swiss Franc

Swiss Franc (CHF)
Central Bank: Swiss National Bank (SNB)
Current Interest Rate: Link Link here

A Banker's Currency
The Swiss National Bank differs from all other major central banks because it is viewed as a governing body with private and public ownership. This stems from the fact that the Swiss National Bank is technically a corporation under special regulation. Consequently, just over half of the governing body is owned by the sovereign states of Switzerland. This arrangement underlines the economic and financial stability policies dictated by the governing board of the SNB. The SNB is noticeably smaller than most other governing bodies. Monetary policy decisions are decided on by three major bank heads who meet on a quarterly basis. This governing board creates the band (plus or minus 25 basis points) within which the interest rate will reside.

Much like the euro, the Swiss franc (CHF) rarely makes significant moves in individual sessions. Therefore, keep an eye on this particular currency to trade in the average daily range of 35 pips per day. High-frequency volume for this currency is usually seen during the London session. (For more on the CHF, read Forex: Making Sense Of The Euro/Swiss Franc Relationship.)

Canadian Dollar


Related Articles
  1. Forex Strategies

    Buying Swiss Francs as a Long-Term Investment: Risks & Rewards

    Learn about the risks and rewards of investing long term in Swiss francs and the history of the Swiss franc's exchange rate against the dollar.
  2. Forex

    Is The Swiss Franc A Good Investment?

    Individual investors, businesses, financial institutes and even countries have been keeping their money in Swiss francs.
  3. Forex Fundamentals

    Why The Swiss Franc Is So Strong

    We look at the recent and historic strength of the Swiss franc, as well as recent actions by the Swiss National Bank.
  4. Forex

    Is The Swiss Franc A Safe Haven?

    We examine when and why there are runs on Swiss francs.
  5. Forex Education

    Forex Currencies: The USD/CHF

    By Brian PerrySwitzerland is known as a stable, safe and prosperous nation. Surrounded by the Alps and with a reputation for neutrality, Switzerland has long appeared to be almost a world unto ...
  6. Mutual Funds & ETFs

    How To Invest In The Swiss Franc

    The Swiss franc is one of the safe havens of the investing world. Learn how invest through ETFs, forex, futures, and binary options.
  7. Forex

    USD-CHF Pair

    Trading the USD-CHF currency pair
  8. Forex

    Why Switzerland Scrapped the Euro

    Why did the Swiss scrap its peg to the Euro and what impact will it have globally?
  9. Chart Advisor

    Use This ETF To Trade The Swiss Franc

    Traders were stunned last week when the Swiss National Bank removed the currency peg that tied the value of the Swiss franc to the euro.
  10. Investing News

    How Not to Invest: The Swiss National Bank (SNBN)

    Learn what not to do by following the curious and sometimes suspicious actions of one of the world's most aggressive central banks, the Swiss National Bank.
RELATED TERMS
  1. Swiss National Bank

    The Swiss National Bank is the bank that is responsible for setting ...
  2. USD/CHF (U.S. Dollar/Swiss Franc) ...

    The abbreviation for the U.S. dollar and Swiss franc (USD/CHF) ...
  3. CHF

    In currencies, this is the abbreviation for the Swiss franc. ...
  4. CHF (Swiss Franc)

    The currency abbreviation for the Swiss franc (CHF), the currency ...
  5. SIX Swiss Exchange

    Switerzland's primary stock exchange, located in Zurich. The ...
  6. Swissie

    A slang term for the Swiss franc. The Swiss franc, or Swissie, ...
RELATED FAQS
  1. How do I open a Swiss bank account, and what makes them so special?

    Surprisingly, opening a Swiss bank account is not that much different from opening a standard bank account because you have ... Read Answer >>
  2. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
  3. Is France a developed country?

    Discover what qualifies France as a developed country and how its diverse economy has helped it become one of the largest ... Read Answer >>
  4. What are the Gnomes of Zurich?

    The "Gnomes of Zurich" is a euphemism for Swiss bankers. The name is meant as an insult because gnomes, most often found ... Read Answer >>
  5. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  6. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>

You May Also Like

Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center