Swiss franc
 | This article's factual accuracy is disputed. |
| Swiss Franc | |
  Ten and twenty Swiss francs
| |
|---|---|
| Country | Switzerland, Liechtenstein |
| Made up of: | 100 Rappen (Rp.) |
| ISO-4217-Code | CHF |
| Abbreviation: | CHF (international), Fr. (German), fr. (French, Italian, Romansh), SFr. (unofficial) |
The franc (ISO 4217: CHF or 756) is the currency and legal tender of Switzerland and Liechtenstein. Franc banknotes are issued by the central bank of Switzerland, the Swiss National Bank, while coins are issued by the federal mint, Swissmint.
The Swiss franc is the only version of the franc still issued in Europe. Its name in the four official languages of Switzerland is Franken (German), franc (French and Rhaeto-Romanic), and franco (Italian). The smaller denomination, which is worth a hundredth of a franc, is called Rappen (Rp.) in German, centime (c.) in French, centesimo (ct.) in Italian and rap (rp.) in Rhaeto-Romanic.
The current franc was introduced in 1850 at par with the French franc. It replaced the different currencies of the Swiss cantons, some of which had been using a franc (divided into 10 batzen and 100 rappen) which was worth 1½ French francs.
In 1865, France, Belgium, Italy, and Switzerland formed the Latin Monetary Union where they agreed to change their national currencies to a standard of 4.5 grams of silver or 0.290322 grams of gold. Even after the monetary union faded away in the 1920s and officially ended in 1927, the Swiss franc remained on that standard until 1967.
As of January 27, 2006, the Swiss franc was worth US$ 0.778695 or € 0.643950. Since mid-2003, its exchange rate with the Euro has been stable at a value of about 1.55 CHF per Euro, so that the Swiss Franc has risen and fallen in tandem with the Euro against the U.S. dollar and other currencies.
The Swiss franc has historically been considered a safe haven currency with virtually zero inflation and a legal requirement that a minimum 40% is backed by gold reserves.[1] However this link to gold, which dates from the 1920's, was terminated on 1 May 2000 following an amendment to the Swiss Constitution.[2] The Swiss franc has suffered devaluation only once, on 27 September 1936 during the Great Depression, when the currency was devalued by 30% following the devaluations of the British pound, U.S. dollar and French franc. [3]
History
Before 1850, about 75 entities were making coins in Switzerland, including the 25 cantons and half-cantons, 16 cities, abbeys, resulting in about 860 different coins in circulation, with different values and denominations. Moreover, less than 15% of the money in circulation in Switzerland in 1850 was local, with the rest being foreign money, mainly brought back by mercenaries. In addition, some private banks also started issuing the first banknotes, so that in total, at least 8000 different coins and notes were in circulation at that time, making the monetary system extremely complicated.[4][5]
In order to solve this problem, the new Swiss Federal Constitution of 1848 specified that the Federal Government would be the only entity allowed to make money in Switzerland. This was followed two years later by the first Federal Coinage Act, passed by the Federal Assembly on 7 May 1850, which introduced the franc as the monetary unit of Switzerland.
The current franc was introduced in 1850 at par with the French franc. It replaced the different currencies of the Swiss cantons, some of which had been using a franc (divided into 10 batzen and 100 rappen) which was worth 1½ French francs.
In 1865, France, Belgium, Italy, and Switzerland formed the Latin Monetary Union where they agreed to change their national currencies to a standard of 4.5 grams of silver or 0.290322 grams of gold. Even after the monetary union faded away in the 1920s and officially ended in 1927, the Swiss franc remained on that standard until 1967.
Coins and banknotes
Swiss francs have been issued as coins since 1850, and as banknotes since 1907. Combinations of up to 100 usual Swiss coins (not including special or commemorative coins) are legal tender; banknotes are legal tender for any amount.[6]
As of December 2005, the total value of released Swiss coins and banknotes was 43,834.99 millions Swiss francs.[7]
| Value of Swiss coins and banknotes in circulation as of December 2005 (in millions CHF)[7] | ||||||||
|---|---|---|---|---|---|---|---|---|
| Coins | 10 Francs | 20 Francs | 50 Francs | 100 Francs | 200 Francs | 500 Francs | 1000 Francs | Total |
| 2468.45 | 611.29 | 1293.11 | 1798.46 | 7977.21 | 6280.35 | 167.39 | 23,238.84 | 43,834 99 |
Coins
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The first Swiss coins were released in 1850. Before this date, the different Swiss cantons had their own money, which different names and values. The technical details of Swiss coins, in particular the composition, have varied greatly over the years; however, the actual design of the coins has changed very little over their lifetime; for most of them (all except 5.- and 1/2 franc), their design has not changed since at least 1880.
Coins of 1/2 francs and above were made of silver until the mid-1960s; at that time, the price of silver raised significantly, so that the face value of the 1/2, 1 and 2 francs was below the value of the metal they were made of. Some people started to sell their silver coins abroad for melting, which prompted the federal government to make this practice illegal, and to require a new alloy to be used for these coins.[8]
A 2 centimes coin also used to exist, but it was last manufactured in 1974 and is not legal tender anymore. The 1 centime coin is still produced, but it does not play any role in the monetary system anymore. People and groups who can justify the use of 1 centime coins for monetary purposes can obtain them at face value; any other user (such as collectors) must pay an additional 4 centimes per coin to cover the production costs.
In 2005, the federal government announced its intent to remove from circulation the 1 and 5 centime coins, as their production costs exceeds their face value. However, in the consultation procedure, this drew opposition from retailers and consumer groups, who were worried that the subsequent rounding would lead to price increases. In February 2006, it was announced that only the 1 centime coin would be removed from circulation, while the 5 centimes coin would still be produced.[9]
| Overview of current Swiss coins[10] | |||||
|---|---|---|---|---|---|
| Value | ø (mm) |
Thickness (mm) |
Weight (g) |
Alloy | Remarks |
| 1 centime | 16 | 1.10 | 1.5 | Bronze | Remains legal tender, but not used in practice. |
| 5 centimes | 17.15 | 1.25 | 1.8 | Aluminium bronze | Made in Cupronickel or pure Nickel until 1980 |
| 10 centimes | 19.15 | 1.45 | 3 | Cupronickel | |
| 20 centimes | 21.05 | 1.65 | 4 | Cupronickel | |
| 1/2 franc (50 centimes) |
18.20 | 1.25 | 2.2 | Cupronickel | In silver until 1967 |
| 1 franc | 23.20 | 1.55 | 4.4 | Cupronickel | In silver until 1967 |
| 2 francs | 27.40 | 2.15 | 8.8 | Cupronickel | In silver until 1967 |
| 5 francs | 31.45 | 2.35 | 13.2 | Cupronickel | In silver until 1967 and in 1969. |
In addition to these general circulation coins, numerous series of commemorative coins have been issued, as well as gold coins including the well-known Vreneli. These coins generally remain legal tender, but are not used as such because their material or collector's value usually exceeds their face value.
Banknotes
 |
Since 1907, when the first series of Swiss banknotes was printed, eight series have been printed, six of which have been released for use by the general public. The current (8th) series of banknotes was designed by Jörg Zintzmeyer around the theme of the arts and released starting in 1995. In addition to a new design, this series was different from the previous one on several counts. Probably the most important difference from a practical point of view was that the seldom-used 500 franc note was replaced by a new 200 francs note; this new note has indeed proved more successful than the old 500 francs note.[11] The base colors of the new notes were kept similar to the old ones, except the 20 francs note which was changed from Blue to red to prevent a frequent confusion with the 100 francs note. The size of the note was changed as well, with all notes from the 8th series having the same height (74 mm); while the widths were changed as well, they are still increasing with the value of the note. The new series contains many more security features than the previous one[12]; many (but not all) of them are now visibly displayed and have been widely advertised, in contrast with the previous series where most of the features were kept secret
| Overview of banknotes in the current (8th) series of Swiss banknotes[13] | |||||
|---|---|---|---|---|---|
| Value | First release | Person depicted | Base colour | Size | Remarks |
| 10 francs | 8 April 1997 | Le Corbusier (1887–1965) | Yellow | 126×74mm | |
| 20 francs | 1 October 1996 | Arthur Honegger (1892–1955) | Red | 137×74mm | |
| 50 francs | 3 October 1995 | Sophie Taeuber-Arp (1889–1943) | Green | 148×74mm | |
| 100 francs | 1 October 1998 | Alberto Giacometti (1901–1966) | Blue | 159×74mm | |
| 200 francs | 1 October 1997 | Charles Ferdinand Ramuz (1878–1947) | Brown | 170×74mm | Replaces the 500 francs banknote in the previous series |
| 1000 francs | 1 April 1998 | Jacob Burckhardt (1818–1897) | Purple | 181×74mm | |
The previous series (6th, 1976) designed by Ernst and Ursula Hiestand depicted personalities of sciences of the world of science. It has been recalled and replaced and will lose any value on 1 May 2020. As of 2006, a large number of notes from this series has not yet been exchanged, even though it has not been legal tender for more than 5 years; for example, the value of 500 francs banknotes still in circulation represents 167.4 millions Swiss Francs.[7] When the 5th series lost its validity, at the end of April 2000, the banknotes that had not been exchanged represented a total value of 244,3 millions Swiss francs; in accordance with Swiss law, this amount was transferred to the Swiss Fund for Emergency Losses in the case of non-insurable natural disasters.[14]
| Overview of banknotes in the 6th series of Swiss banknotes[15] | ||||
|---|---|---|---|---|
| Value | First release | Person depicted | Base colour | Size |
| 10 francs | 5 November 1979 | Leonhard Euler (1707–1783) | Red | 137×66mm |
| 20 francs | 4 April 1979 | Horace-Bénédict de Saussure (1740–1799) | Blue | 148×70mm |
| 50 francs | 4 October 1978 | Conrad Gessner (1516–1565) | Green | 159×74mm |
| 100 francs | 4 october 1976 | Francesco Borromini (1599–1667) | Dark blue | 170×78mm |
| 500 francs | 4 April 1977 | Albrecht von Haller (1708–1777) | Brown | 181×82mm |
| 1000 francs | 4 April 1978 | Auguste Forel (1848–1931) | Purple | 192×86mm |
The seventh series was printed, but is kept as a "reserve series", ready to be used if, for example, wide counterfeiting of the current series suddenly happened. For security reasons, the Swiss National Bank has not published any description or picture of this series, apart from very small extracts. [16]
In February 2005, a competition was launched for the design of the 9th series planned to be released around 2010 on the theme Switzerland open to the world. The results were announced in November 2005, but the selected design drew widespread criticisms from the population.[17]
| Overview of all series of Swiss banknotes[18] | ||||||
|---|---|---|---|---|---|---|
| Series | Introduction | Date recalled | Valueless since | Designer | Remark | Link to pictures and details |
| 1st | 1907 | 1 July 1925 | 1 July 1945 | Josef Storck and Albert Walch | Changeover notes, similar to notes used by earlier banks | [1] |
| 2nd | 1911 | 1 October 1958 | 1 October 1978 | Eugène Burnand, Ferdinand Hodler, S. Balzer | [2] | |
| 3rd | 1918 | 1 July 1925 | 1 July 1945 | Orell Füssli | War notes; only partially issued | [3] |
| 4th | 1938 | — | — | Victor Surbeck and Hans Erni | Reserve series, never issued | [4] |
| 5th | 1956 | 1 May 1980 | 1 May 2000 | Pierre Gauchat and Hermann Eidenbenz | [5] | |
| 6th | 1976 | 1 May 2000 | 1 May 2020 | Ernst and Ursula Hiestand | [6] | |
| 7th | — | — | — | Elisabeth and Roger Pfund | Current reserve series; not issued | [7] |
| 8th | 1995 | — | — | Jörg Zintzmeyer | Current series | [8] |
| Current CHF exchange rates | |
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See also
Notes
- ^ Declaration of the Swiss Government, through the Federal Finance and Customs Department, and the National Bank of Switzerland regarding the purchase and sale of gold, in Monetary History of Gold: volume 3 — After the Gold Standard
- ^ Federal Law on Currency and Legal Tender to enter into force on 1 May 2000, Press Release, 12 April 2000. Last accessed 2 March 2006.
- ^ Table of currency devaluations in the United States and Europe following the devaluation the pound in 1931, in Monetary History of Gold: volume 3 — After the Gold Standard
- ^ Otto Paul Wenger, p. 49–50.
- ^ 150 Years of Swiss coinage
- ^ Art. 3 of the Swiss law on Monetary Unit and means of payment. German, French and Italian versions.
- ^ a b c Swiss National Bank, Monthly Statistical Bulletin January 2006, A2: Banknotes and coins in circulation. Berne, January 2006
- ^ 150 Years of Swiss coinage: From silver to cupronickel, on the website of Swissmint. Last accessed 2 March 2006.
- ^ Pièce de cinq centimes: Hans-Rudolf Merz renonce à la supprimer, Swissinfo, 26 February 2006.
- ^ Circulation coins: Technical data, on the website of Swissmint. Last accessed 2 March 2006.
- ^ The global value of 200 francs notes in circulation in 2000 (5120.0 million francs) is larger than the value of 500.- notes in 1996 (3912.30), even when these figures are corrected for the global increase in total value of Swiss banknotes in circulation (+9%). Figures from the Monthly Statistical Bulletin of the Swiss National Bank, January 2006, Op cit
- ^ An overview of the security features, Swiss National Bank. Last accessed 26 February 2006.
- ^ Eighth banknote series 1995, on the web site of the Swiss National Bank. Last accessed 2 March 2006.
- ^ National Bank remits Sfr 244,3 million to the Fund for Emergency Losses, press release of the Swiss National Bank, 4 May 2000. Last accessed 26 February 2006.
- ^ Sixth banknote series 1976, on the web site of the Swiss National Bank. Last accessed 2 March 2006.
- ^ Seventh banknote series; see http://www.snb.ch/e/banknoten/alle_serien/img/pic_siebte.gif for an extract. Last accessed 2 March 2005.
- ^ New banknotes project, on the website of the Swiss National Bank. Last accessed 2 March 2005.
- ^ All banknote series of the SNB, on the web site of the Swiss National Bank. Last accessed 2 March 2006.
References
- Bernard Lescaze, Une monnaie pour la Suisse. Hurter, 1999. ISBN 2940031835
- Michel de Rivaz, The Swiss banknote: 1907–1997. Genoud, 1997. ISBN 2881000800
- H.U. Wartenwiler, Swiss Coin Catalog 1798–2005, 2006. ISBN 3905712008
- Otto Paul Wenger, Introduction à la numismatique, Cahier du Crédit Suisse, August 1978 (in French).
- Swissmint, 150 Years of Swiss coinage: A brief historical discourse. Last accessed 2 March 2006.
- Swissmint, Prägungen von Schweizer Münzen ab 1850 — Frappes des pièces de monnaie suisses à partir de 1850, 2000.
External links
