When you are trying to discover “What is Forex Trading?” You will discover that one of the widely discussed topics has something to do with currencies. This is because apart they are regarded as the soul of the market. Without currencies, the strategies and concepts will obviously be useful. Since I have mentioned currency, we shall share in this article the details of Switzerland’s legal tender and try to explain why it is regarded as another powerful currency in the world.
The Swiss Franc
This currency is famous as an official currency and legal tender in Switzerland, Liechtenstein and the Italian exclave of Campione d’Italia. The only authorized agency to issue such notes is The Swiss National Bank (SNB) while the federal mint Swissmint issues the coins. The Swiss franc has always been remarkable throughout history because of its nature. As one of the so-called “hard currencies”, it has earned its credibility in terms of store of value. As a matter of fact, this currency has a higher value than the US Dollar. Just this year, One franc can be bought at $1.10.
The Swiss Economy
Switzerland’s economy has been regarded under the free category for more than ten years now. This economic category is being shared and enjoyed only by 3 more other countries in 2021. As per the study, Switzerland is one of the few countries that has the highest per capita GDPs as well as a highly-skilled labor force. Their economic status is usually reliant on financial services, precision manufacturing, metals, pharmaceuticals, chemicals, and electronics because these are the main products and services which they have an abundant supply or they are good at.
4 Frequently Asked Questions About Swiss Francs
- Do Swiss Establishments and Markets Accept Euro?
Switzerland is a part of the European Union but their legal tender is the Swiss Francs and not the Euro. But if you happen to transact in Swiss Markets either as a tourist or as a trader, you can use your Euros but you have to expect that Swiss will use their currency for your change.
- Is Swiss Franc Stronger than the US Dollar?
As of February this year, the Swiss Franc has a higher exchange value than the US Dollar. 1 Swiss Franc is equivalent to $1.10.
- Can I use US Dollars when in Switzerland?
Swiss stores and markets do not accept US Dollar bills for transactions. So, if you plan to travel to the said country, it is suggested that you have to apply your knowledge on “What is Forex Trading? “ Since US Dollars have lesser value than Swiss Francs, you might have to use your skills as to where to purchase their currency at a lesser price.
- Is Swiss Francs a potential investment?
If you are a trader, the strength of a currency does not define the potential profit that a particular asset can provide. In the case of Swiss Francs, it is naturally characterized as a stable currency. With this in mind, you can enjoy some privileges which volatile currencies cannot provide.
Be First to Comment