Until the mid-nineteenth century, hundreds of types of banknotes and notes were in circulation in Switzerland. In accordance with the decree of the times of Napoleon, the bishopric and cantons issued their money. We can say that Swiss francs appeared in the fifties of the century before last. Helvetic coins were cast in silver at that time. Their value was originally equivalent to the face value. However, the government of the Swiss Confederation did not have a monopoly in the production of money.
In other words, each individual bank could issue bank notes.
The increase in the amount of paper money gradually contributed to their devaluation. Therefore, in 1907, Switzerland has its own National Bank. In the midst of World War I, this country, like many other European states, decided to abandon the gold standard. Thus, all expenses of that difficult time were covered with the help of the included printing press. However, Switzerland, unlike a number of other states, after the end of hostilities in Europe escaped inflation. The printing press stamping banknotes was turned off, followed by a return to the gold standard. Swiss francs have strengthened their position. They became one of the strongest currencies in the 20s of the last century, along with Dutch florins.
The strengthening of the franc was explained by the following
Reasons: neutrality during the war years, which allowed to avoid colossal wastage on hostilities; a return to the gold standard and the ensuing fight against inflation. The events of the 30s shocked the United States and Europe, if not the whole world. Some of the leading countries in Europe were forced to abandon the gold standard. But all this did not negatively affect the economic situation of the Confederation. Swiss francs remained one of the most reliable currencies in the world for a long time. However, in the early seventies an event occurred that affected the economies of many countries. The Bretton Woods system, according to which all currencies were pegged to the dollar, and he, in turn, to the gold reserve, showed its complete failure, after which all its participants abandoned it. This forced the Confederate government to introduce floating rates.
Swiss francs today are a reliable currency. They didn’t even suffer
during the financial crisis that shook the economies of many countries. They are sometimes unofficially called the "currency of refuge." Each franc is divided into one hundred rapps, or santims. The national currency is controlled by the authorities of the Confederation. Swiss franc refers to the euro as 1: 0.81. Recently, the common currency of the EU is gradually losing ground to Confederate money. This is because the growth rate of the European economy as a whole is declining. Swiss franc refers to the ruble as 1: 35.5 today. The exchange rate of the Russian currency is gradually falling.
Switzerland has long been a kind of magnet attracting large foreign capital. Many wealthy people leave part of their funds in the banks of this country. This is due to the stable political and economic situation in Switzerland, the quality of service. Risks when investing in Confederation banks are minimal. There is always the opportunity to withdraw your contribution. Swiss banks provide a full range of services to their customers. All this helps to attract foreign capital, which ensures constant stability of the national currency.