The state currency of Switzerland is Swiss franc. The international currency market is designated CHF. One franc is equal to one hundred centimes. In circulation are paper notes from 10 to 1000 francs, coins from 1 to 5 francs and coins from 5 to 50 centimes.
A bit of history
The Swiss franc is rightfully considered one of the most stable world currencies. Its history began in 1850, after gaining independence by Switzerland. The years of French domination were not in vain, and the Swiss franc was equated at face value to his French counterpart.
The prevailing traditions, long-term relationships, reasonable liberal financial legislation, the country's neutrality, and high secrecy of deposits have made Swiss banks extremely attractive for investments. In addition, the exchange rate of this currency was maintained from 1865 to 2000 in a stable ratio of 4.5 grams of silver for 0.29 grams of gold, that is, the high stability of the franc was observed
The currency in Switzerland experienced devaluation only once in its history - in 1936, during the years of the Great Depression. But the next world crises of 1973 and 1998, the franc suffered without loss. Currently, the Swiss currency is used by banks as a reserve, with zero inflation. Eastern countries prefer to use the Swiss franc instead of the euro, since the degree of confidence in this currency is much higher.
Switzerland is steadily adhering to the traditions of neutrality, therefore it is not a member of the European Community or the G8 countries. Such foreign policy allows the country to stay away from high-profile economic and political crises.
Current situation
Over the past few years, the Swiss franc has strengthened against the euro by almost 20%. State authorities even had to artificially restrain the growth of the franc. Such a rise in the price of the local currency negatively affected the country's tourism business. Increasingly, Europeans prefer the Austrian or French Alps, because the prices there are more affordable, and get a budget holiday. After the 2008 crisis, this became a very significant factor.
Therefore, owners of Swiss mountain resorts are now actively lowering prices: ski passes can be bought at a discount of 30%, discounts on accommodation in hotels and chalets are massive, discounts on skiing with an instructor, prices in restaurants have decreased by 15-20%, ski equipment is offered at favorable exchange rate with a discount of up to 20%. But even with all these measures, ski resorts in Switzerland remain the most expensive in Europe. Hotels are mostly only half full, and you can book a chalet just before the Christmas and New Year holidays.
Currency Exchange Rules
Swiss banks work standard from eight in the morning until four to six in the evening on weekdays, with a lunch break from twelve to two. At airports and train stations, currency can be exchanged daily from eight in the morning until ten in the evening. There are round-the-clock items. An exchange can be made at bank branches, at exchange offices of supermarkets and department stores, and at some travel agencies. But in Switzerland, the course is very overvalued, so it is better to change the Swiss franc abroad.
In most stores, you can pay in dollars or euros, the main types of credit cards and travel checks are also accepted.
VAT refund for purchases
Swiss VAT is 7.5%. In restaurants and hotels all taxes are included in the invoice price. For a one-time purchase in any store worth more than 500 francs, the value-added tax is refunded. To do this, you need to present your passport in the store and receive the “Tax-free Shopping” check. When leaving the country, you can refund VAT at the bank at the airport. And in large department stores and stores, VAT is refunded on the spot, but always upon presentation of a passport.