The Swiss franc is strong due to the economy.

 

Presently, the Swiss franc is valued at $1.03 in relation to the US dollar, marking an increase from $1.02 a month ago on December 20th, and $1 a year ago on January 20th, 2019. The lowest point in the past year was recorded on May 4th, 2019, at $0.98, while the highest point was reached on December 11th, at $1.03. In terms of the euro, the Swiss franc currently stands at €0.93. A month ago, on December 20th, it was valued at €0.92, and a year ago, on January 20th, 2019, it was equivalent to €0.88. The lowest value within the past 12 months occurred on January 19th this year, at €0.93. Against the British pound, the Swiss franc is trading at £0.79. One month ago, on December 20th, it was valued at £0.78, and a year ago, on January 20th, 2019, it remained at the same level, £0.78. The highest point against the pound in the last 12 months was observed on August 12th last year, at £0.85, while the lowest point occurred on December 12th at £0.75.

The Swiss franc has displayed a trend of strength against the euro and the dollar, but not against the pound. This phenomenon may be linked to the reduction in political uncertainty in the UK following the December election, leading to an upward reevaluation of the pound. The Swiss franc is renowned as the world’s most resilient currency in terms of maintaining its value. Previously, it shared this distinction with the Venezuelan bolivar, but with Venezuela experiencing inflation exceeding 4,600% at the end of last year, the franc no longer faces competition from this source. Despite Switzerland’s steadfast defense of its sovereignty, its economy is heavily reliant on the euro-zone and the broader European Union. Consequently, Switzerland has aligned many of its regulations with those of the EU. According to the International Monetary Fund (IMF), Switzerland’s economy has performed well in recent years, with a robust GDP growth rate of 2.5% in 2018, driven by strong external demand. The country’s economy benefits from a thriving service sector, particularly in financial services, and a manufacturing industry specialized in high-technology production. Switzerland boasts economic and political stability, a transparent legal system, exceptional infrastructure, efficient capital markets, and low corporate tax rates, making it one of the most competitive economies globally, as acknowledged by the Central Intelligence Agency (CIA).    

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