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Over the past century, the Swiss franc (CHF) has demonstrated remarkable stability and strength against major currencies, reflecting Switzerland's robust economic policies and safe-haven status. Below is an overview of its performance relative to the U.S. dollar (USD), British pound (GBP), euro (EUR), and Japanese yen (JPY).
1. Swiss Franc vs U.S. Dollar (USD):
- Historical Performance: In 1924, 1 USD was equivalent to approximately 5.2 CHF. By 2024, this rate had shifted to about 1 USD, equaling 0.90 CHF, indicating a significant appreciation of the Swiss franc against the U.S. dollar over the century.
- Key Factors: The U.S. has experienced high inflation and increased debt levels, while Switzerland has maintained low inflation and prudent fiscal policies, contributing to the franc's strength.
2. Swiss Franc vs. British Pound (GBP):
- Historical Performance: In 1924, 1 GBP was worth around 25 CHF. By 2024, 1 GBP equalled approximately 1.20 CHF, showcasing a substantial appreciation of the Swiss franc against the British pound.
- Key Factors: Post-World War II economic challenges and inflationary pressures in the UK led to the pound's depreciation, whereas Switzerland's stable economy bolstered the franc's value.
3. Swiss Franc vs. Euro (EUR):
- Historical Performance: The euro was introduced in 1999, replacing several European currencies. At its inception, 1 EUR was equivalent to about 1.60 CHF. By 2024, this rate had adjusted to approximately 1 EUR, equaling 1.05 CHF, indicating the franc's appreciation against the euro.
- Key Factors: Economic disparities among Eurozone countries and periodic crises have affected the euro's stability, while the Swiss franc has remained a preferred safe-haven currency.
4. Swiss Franc vs. Japanese Yen (JPY):
- Historical Performance: In 1924, 1 CHF was equivalent to approximately 10 JPY. By 2024, 1 CHF equaled about 120 JPY, reflecting the franc's appreciation against the yen over the century.
- Key Factors: Both currencies are considered safe havens; however, Japan's prolonged deflationary periods and economic stagnation have led to the yen's relative weakening compared to the franc.