Is the Swiss Franc due to weaken or will it remain firm?

GBPCHF Exchange Rates Reach Highest Levels Since Mid-March

The Swiss Franc has been a fairly strong character in recent years, not only being a well known safer haven for investors but also due to the abandonment of the Swiss National Bank of their exchange rate cap against the Euro back in 2015.

This move alone saw the Swiss Franc make gains of over 25% in an extremely short space of time against a number of major currencies, and although it has come back a little since then the currency has still remained fairly strong.

Believe it or not, due to the SNB buying foreign assets to hold off the strength of the Swiss Franc they have now amassed over CHF 800 billion of these assets, which in turn have returned an estimated CHF 54 Billion in profit due to currency positions, a rise in the value of gold and a rise in Swiss Franc Assets too.

The reason the SNB would have gone to such large scales is that by buying foreign assets the bank would have to sell off Swiss Francs, which in turn should lead to more CHF being available in the market and the value of CHF decreasing, however with such a demand hanging over the Swiss Franc they are still finding it hard to weaken.

My personal opinion is that I feel the Swiss Franc will remain firm in the coming months against most majors so if you are in the position that you need to make a large Swiss Franc purchase, it may be prudent to consider it sooner rather than later.

If you would like assistance with either buying or selling Swiss Francs then i can also help you too, both in terms of getting the best rate of exchange and helping you with the timing of the transfer.


Feel free to contact me (Daniel Wright) directly by emailing [email protected] and I will be happy to help you personally.