CHF (Swiss Franc)
The Swiss Franc is the currency and legal tender for Switzerland and Liechtenstein. CHF is the shorthand code for the currency; of which the 'CH' stands for 'Confoederatio Helvetica' and the 'F' stands for 'Franc'.
Switzerland is consistently listed as one of the richest countries around the globe, with some of the highest GDP-per-capita statistics in the world. Switzerland is also considered to be one of the oldest countries, tracing the roots of the Swiss Confederation to the year 1291.
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|Gold Posts Monthly Gain But Prices Vulnerable Ahead of NFPs- $1271 Key||bearish|
The Swiss economy is noted for its stability, prosperity, and aptitude for technological innovation. The history of Switzerland also plays a big role in its current day economy, and that is as the foundation of the banking sector.
Swiss neutrality and long-term national sovereignty, combined with a relatively stable business and political environment have helped to shape Switzerland into a highly-desired financial center with robust banking operations.
The European Debt Crisis brought a new light to this facet of the Swiss economy, as safe-haven flows from neighboring European countries poured into CHF, creating massive strength in the currency. In 2002, the USD/CHF pair was traded at 1.5000; in August of 2011, the pair moved below .7500. This massive strength led to enormous pressure on Swiss exporters and in turn the Swiss economy. The Swiss National Bank imposed a 'floor' on the EURCHF currency pair since Europe is their closest and most voluminous trade partner. The floor was initially set at 1.2000 on the EUR/CHF pair, and this helped to satiate the strength that was being seen in the currency.