Swiss franc made conditional abbreviated CHF.What is the currency in question, try to understand.CHF (Swiss franc) - is officially recognized by the Swiss currency, the popularity of which is caused by a strong banking system of the State.Frank is widely used in the international banking settlement, belongs to the category of assets on the international currency markets and belongs to the category of the world's leading currency.The importance of currency significantly increases in times of economic crisis.Minimal fluctuations in currency makes a great alternative to the world's dominant currency, the dollar.
Swiss Franc or CHF, for that currency, knows almost everyone, since it belongs to the category of free-convertible currency in the world.The share of international payments the franc slightly greater than 10%.The volume of foreign exchange reserves in CHF corresponds to only 0.1%.Currency actively used during deposit operations, as Switzerland is itself the owner of one of the highest
national monetary unit of Switzerland is characterized by low interest rates.Currency Volatility increased in the case of important financial and political events in Europe.In the last decade, one can observe a substantial weakening of the currency.The price of the Swiss franc exchange rate in the configuration of the euro has a downward trend.If in the period before 2006, the average value of the franc corresponded to 1.5 euros, in 2011 it was possible to watch the price of 1.1 euros.A significant blow to the reputation of currency was struck in 2010, when it was decided to refuse to provide the currency by 40% reserves.
Frank in the currency market
currency (Swiss francs) is widely used as a commercial tool in the international market "Forex".It is perfectly suited for the implementation of the strategy, different minimum risks, known among traders as the Carry Trade.Currency effective as a hedge risk, and for their insurance.Maximum effect on the movement of quotations the currency of the policy of the State Bank and the important economic events in the EU.CHF / JPY, EUR / CHF and USD / CHF - this is the most popular currency pairs in the foreign exchange market.They account for about 5% of all transactions on the "Forex".
History Swiss currency
Swiss franc was introduced into circulation in 1850.On the territory of the country at that time there was no such enterprises as mint.Coinage was made by banks and private companies.Own funds were issued not only financial institutions but also in small towns, abbeys.
Since 1920 a law came into force that the entire currency of the country will have to provide in the form of the gold reserve (40%).During the period of existence of the Swiss franc, CHF (the currency of a country that, we have already discussed above), the devaluation took place only once, in 1936.The depreciation was small and did not exceed 30%.A prerequisite for the economic crisis has become a phenomenon in the United States.Strengthening the currency fell to the Second World War, as the money the state enterprise not affected by the hostilities.Banks act as storage for the foreign exchange reserves of the conflicting countries.Despite the European crisis, at the moment franc remains a bargaining global currency.
Communication franc and the US dollar
trying to sort out which currency is CHF and which affects its movement, is taken into account its relationship with the US dollar.To analyze the situation, you should pay attention to the behavior of the US dollar, and its movement in the pair with the other currencies of the world.At the moment when a large investor wants to reduce the risks, it directs the flow of capital into Switzerland, which automatically strengthens the currency.Thus, the strengthening of the national currency unit is separate from the development of the economy of the country.Switzerland is one of the richest countries in the world, and its currency - the most reliable.National banks category UBS and Credit Suisse have the title of the leading financial institutions in the world.Despite the fact that the state of the economy is not advertised, each report of the National Bank and any changes in the aspect of monetary policy has always attracted the attention of almost all members of the international currency market.
Features of the economy and its impact on the popularity of currency in the world currency market
Pay attention to the features of the Swiss economy is very important to study the topic, concerning the Swiss currency, also known by the acronym CHF.What is the currency of this, we looked at above, but now you can stay on the banking system.For it is characteristic of complete privacy, allowing very effectively to evade taxes.According to preliminary estimates the world's economists, weaken the financial mechanism of the state is possible only in one case - when applied to state harsh sanctions from the EU.
reliability of the banking system of the country directly affects the reliability of its currency.Features of the economy and the impact factor for the currency of the US economy and the EU economy determines the movement of the mirror pair USD / CHF and EUR / USD.When one of them jump starts the second a similar movement, but with a slight time delay of.Efficiency prediction of currency pairs due to the stability of the franc on the one hand and the heavy traffic of the dollar - on the other.