Switzerland’s mighty money, the strongest currency in the world, is once more providing a safe haven in turbulent times.
While financial markets worldwide suffer volatility and uncertainty, the Swiss franc has held rock-steady against other major currencies during the past 12 months.
Against the , it ended the period where it started, at $1.005, with a peak during the year of $1.08 and a trough of $0.99.
Its value against the was €0.86 a year ago and €0.88 now, peaking during the year at €0.89 and touching bottom at €0.83.
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And against , it stood at £0.79 a year ago, its peak for the period, and at £0.77 now, with a trough during the year of £0.76.
Indeed, so buoyant is the franc - the last European currency to use the denomination since Belgium and France joined the euro – that its popularity among traders and investors can be a problem, not least for Switzerland’s exporters, whose goods become more expensive abroad when the currency appreciates.
The reference to real terms indicates inflation has been taken into account, while the “effective” rate measures the franc against a basket of major currencies.