The Swiss franc has not experienced any volatility or significant fluctuations in the past, but will Switzerland’s famously stable currency maintain its strength in 2026 as well?
Switzerland has one of the most solid currencies in the world.
According to the Swiss National Bank (SNB), “no other currency has retained its value so well since the outbreak of the First World War.”
That’s quite a record, but why has the franc appreciated so much over the years, while so many other currencies have weakened?
There are two main reasons for that, the SNB says.
The first is the fact that interest rates in Switzerland often tend to be lower than elsewhere.
“This is due, among other factors, to Switzerland’s traditionally low inflation, as well as its political and economic stability.”
The second reason is the franc’s reputation as a safe haven, particularly in times of high uncertainty worldwide, when the Swiss currency typically gains significantly in value.
How will the franc fare in 2026?
Not surprisingly, given its past strength, the franc is expected to maintain its upward trend in 2026 as well.
UBS projects that the EUR/CHF exchange rate will edge higher to 0.94, while USD/CHF should stabilise around 0.78.
This is due to Switzerland’s continued political stability, low debt, very low inflation rate, as well as a strong and highly innovative economy, the UBS said. And, in a strange twist, the franc gets even stronger during economic upheavals that happen beyond Switzerland’s borders.
“Risks to the global economic outlook are skewed more to the downside than the upside, and political surprises or geopolitical tensions can trigger further appreciation of the franc at any time,” the bank reported.
We should therefore be prepared for a possible further strengthening of the franc in the coming year as well, the bank’s analysts noted.
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Who will benefit the most from the strong franc-weak euro ratio?
In 2026, as in previous years, the clear winners are the residents of Switzerland.
For one, imports from the EU become less expensive for Swiss consumers.
But there are more advantages as well – especially in terms of shopping tourism: buying products in eurozone countries will remain advantageous, as the franc will go much further there than at home – even though Switzerland’s consumer group claims real savings are minimal:
READ ALSO: Is shopping abroad really cheaper for Swiss consumers?
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By the same token, Swiss will pay less for holidays in foreign countries.
With the franc stronger than the euro and the US dollar, you can definitely benefit from travel abroad — at least in terms of accommodations and food while you are there.
And there is another group that will reap benefits from the currency exchange as well: cross-border workers.
More than 400,000 people from neighbouring eurozone states come to work in Switzerland each day, returning to their home countries at night and on weekends.
As their salaries are paid in francs, and their expenses are in euros, they will certainly benefit from the franc-euro exchange rate.
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Good for Swiss consumers, but for export industries – not so much
Swiss exports are at a disadvantage when the franc is stronger than the euro.
A strong franc makes Swiss products more expensive abroad, which penalises exporters and reduces their competitiveness, particularly in key sectors such as watchmaking, precision engineering, and pharmaceuticals.
READ ALSO: What are the prospects for Switzerland’s economy in 2026?
