Swiss Franc - One of The Top Most Traded Currencies in The Trade Market Today

A country which is a part of the Euro Zone, changes its currency to the EURO, but Switzerland along with some other countries like Norway, Sweden and the UK has not changed its currency yet, it has not jumped into the bandwagon of the euro, the currency unit of Switzerland is the Swiss Franc, and it is among the top most traded currencies in the world, foreign currency trading is a trade carried out in the international market on daily basis, people buy and sell different currencies for the sake earning profits and there are a number of people out there who have invested in the Swiss Franc, and there has not been any signal from the Swiss government that they could switch to the Euro anytime soon, that is a plus point for the investors, that they have some certainty about what to expect from their franc

The Swiss franc is a strong currency and its current exchange rate is 1 Swiss franc (CHF) to $1.03, Switzerland has a strong reputation because of their financial stability and this is reason why the Swiss franc is on the most traded currencies in the international trade market, just behind US Dollar (USD), EURO (EUR), Japanese Yen (JPY), and the British Pound (GBP). It currently sits at the 5th spot in the most traded currencies in the international trade market; it occupies almost 6% of the daily trades in the international trade market.

The Swiss government and its banks want to depreciate the value of Swiss franc just to goad demand, a lot of economists argue that the Swiss franc is massively overvalued, the Big Mac index declares the Swiss Franc to be 68% overvalued, and the Bloomberg PPP measures the Swiss Franc as 15% overvalued, there is huge gap in these two estimations but all those who have evaluated the Swiss Franc, conclude it to be massively overvalued, this is a thing to be considered by the investors. Although Switzerland is a well reputed country and they have a very stable financial system, stable economy but whatever the situation, an investor should consider every possibility before investing, and evaluate all avenues.

Because the government has not shown any signs of converting to the Euro, many consider this to be a healthy sign for the stability of the Swiss Franc, and although many consider the Swiss franc to be overvalued, there are many who consider the Swiss franc a safe haven currency and they would urge you to invest in the Swiss franc, before investing anywhere else, if you wish to invest, I think people should also explore the possibility of investing in the Swiss franc, and why shouldn’t, the country has a stable financial system, the currency is strong, chances of converting to the euro are very slim, these are all very positive signs which encourage investors to invest in the Swiss franc, and no wonder it is one of the most traded currencies in the trade market.
By Christina Givens

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