Swiss franc.

The Swiss franc is the currency of Switzerland, a country that is one of the largest banking and financial centers in Europe. Until 2000, banknotes were backed by gold at over 40% of their face value.

It is for this reason that this currency has one of the highest levels of security and has a stable exchange rate on par with precious metals.

These indicators have made the Swiss franc one of the most attractive options for storing capital, with many investors choosing to place their money in this currency for passive storage as deposits. The low interest rates are offset by the appreciation of the Swiss franc against other currencies.

The Swiss banking system is a model of stability and invincibility, which in turn influences trust in the country's currency. Switzerland's economy has one of the highest ratings among developed countries.

However, despite its strength, this currency is not as widely used in gold and foreign exchange reserves as the US dollar and euro, due to its low liquidity. The franc is rarely used in payments for goods and services; its primary application is in banking, where it is often used in settlements and investment portfolios.

Since 2006, a clear trend toward a gradual decline in the Swiss franc has emerged, and it continues to steadily weaken against major currencies. This is due to the Swiss government's concern about the excessive strengthening of the currency, which makes Swiss goods less competitive on global markets.

It should be noted that at the beginning of 2012, this currency strengthened, the reason for this was the global financial crisis; perhaps the growth of the exchange rate will continue until the first positive news about changes in the economies of Europe and the USA.

Trading the Swiss franc on the forex exchange.

As mentioned earlier, this currency is an alternative means of preserving capital from inflation, which is why its exchange rate has a clear correlation with such world currencies as the US dollar, euro, and Japanese yen.

When a banking, political or financial crisis worsens and these currencies become weaker, the Swiss franc confidently begins to rise, thereby confirming its reputation as a safe haven for capital.

This is why the main strategy used when trading this instrument on Forex is the correlation of currency pairs .

The most popular currency pairs are EUR/CHF, USD/CHF, CHF/JPY and GBPCHF; they can be used both in regular trading and in interest rate betting.

Swiss franc turnover on the Forex market accounts for approximately 5% of the total volume of transactions. The highest activity is observed during the operation of European trading platforms, with market volatility reaching more than 150 points per session.

Pairs that include this currency have high profitability and are well predictable.