economy

January 28, 2026

The ‘strongest currency on earth’ just hit an 11-year high

The Swiss franc is widely viewed as a safe haven asset, rising in value in times of geopolitical or macroeconomic uncertainty.

The ‘strongest currency on earth’ just hit an 11-year high

TL;DR

  • The Swiss franc is strengthening due to global uncertainty, reaching decade highs.
  • This appreciation makes monetary policy more complicated for the Swiss National Bank (SNB).
  • A strong franc adds disinflationary pressure to Switzerland's export-driven economy.
  • Key export sectors like pharmaceuticals and precision manufacturing are less sensitive to currency appreciation.
  • Switzerland's inflation rate is low (0.1%), and the SNB's policy rate is 0%, nearing disinflation and negative interest rate territory.
  • The SNB might consider negative interest rates or intervening in the foreign exchange market.
  • Intervention risks attracting renewed anger from the U.S. and potential tariffs, especially given past trade disputes.
  • The Swiss franc's long-term strength is supported by gold prices, safe-haven status, and a current account surplus.
  • The SNB is prepared to intervene if necessary to meet its mandate.

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