Why has Switzerland got such a strong currency?

[sat1983]

Any reasons, bar mafia funding?

[MG-FIDO]

Well it's particularly strong at the moment as it's seen as a fairly safe way of storing wealth amidst the current economic turmoil!

[rudecherub]

Traditional safe haven, but also they talked about going back to a gold backed swiss franc as opposed to the funny money we've got.

[CT63]

rudecherub said:

Traditional safe haven, but also they talked about going back to a gold backed swiss franc as opposed to the funny money we've got.

Yep, it's seen as a safe currency during times like this as Switzerland is pretty neutral

[Asterix]

As said - the norm when everything else is going tits up.

[davepoth]

Don't forget the Nazi gold.

[zac510]

I understood it was to do with banking regulations that protected the account holder's privacy. This led it to be a popular place to store one's wealth, rather than a safe haven per se. But the regulation being eroded away, bit by bit.

[FarleyRusk]

Switzerland punches above its weight thanks to its neutrality, fierce independence and of course fading banking secrecy as has been said. More than 50% of their GDP comes from exports, so a strong Franc will cause income to drop and weaken their economy, unless they reduce quality (which they won't) Bit of a catch 22 really so the central bank has brought interest rates to zero, which is better than negative rates that were sene in the 80's but is not stopping the appeciation of the currency.

I have some savings and about 20% of my pension denominated in CHF, so I'm not complaining right now!