The franc, Switzerland’s famously robust currency, has reached new highs against the euro and dollar, as it continues to strengthen against both currencies.
In the week of January 26th, the franc rose to a level of 0.9167 against the euro – the highest in more than a decade,.
It also gained ground, reaching new highs, against the dollar, at 0,7660.
This is the current exchange rate: 1 franc buys 1.09 euros and 1.30 USD.
This development is not a surprise to economists, who had forecast that the franc’s value would continue to grow in 2026:
READ MORE: Will the Swiss franc continue to gain strength in 2026?
A solid track record
In good times and bad, the franc has, as the saying goes, “proven its worth” – and quite literally so.
Why has it withstood various economic downturns that had wreaked havoc on other currencies?
The answer to this question comes from the best possible source: the Swiss National Bank (SNB), which is responsible for the country’s monetrary policy.
“The first reason is the fact that interest rates in Switzerland often tend to be lower than elsewhere,” the SNB explains on its website. “This is due among other things to Switzerland’s traditionally low inflation as well as its political and economic stability.”
“Following the global financial crisis in 2008, many central banks significantly lowered interest rates, which decreased the interest rate differential between Switzerland and other countries. This in turn made the Swiss franc more attractive.”
Another reason cited by the SNB is “the franc’s reputation as a safe haven, particularly in times of high uncertainty worldwide, as for instance following the global financial crisis or the European debt crisis, when the Swiss currency gained significantly in value.”
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Will you benefit from the strong franc-weak euro/dollar ratio?
If you are a shopper and/or traveller, then yes.
Buying products in eurozone countries will remain advantageous to consumers earning money in Switzerland, as the franc will go much further abroad than at home – even though Switzerland’s consumer group claims real savings are minimal.
And if you travel to the United States, the franc-to-dollar conversion rate will get you quite a big wad of (US) cash.
