The Swiss franc has been outperforming all other major currencies in recent weeks / months. The main reason behind this appreciation is mainly due to currency behind this intriguing country (Switzerland), which played the role of "safe" in the world for several decades. It is estimated that over 30% of global wealth is deposited in Swiss banks, a country with only 6.5 million citizens, but also with more than 500 operating banks and major financial institutions. The famous Swiss banking secrecy has greatly contributed to these facts, in addition to the Swiss banks that have recently been shown to be "facilitators" for the opening and financing of large offshore accounts in Switzerland to Swiss citizens not residents.
Swiss banking secrecy is a Swiss law, ratified by the Swiss Parliament. It prohibits the disclosure of any information relating to bank accounts in Switzerland, which is the identity of a client, the nature of an account or the balance of cash involved. The system is so narrow that each lift of the secret Swiss bank accounts would require a ruling by a Swiss court in a Swiss court.
recent geopolitical events, particularly in the Middle East and North Africa have also suggested that the U.S. dollar has lost its status as the most important currency safe haven in times of crisis. In fact it has been depreciating against all major currencies and commodities, reaching all highs against the gold, silver, the Canadian dollar and Swiss franc.
It 's true that a strong currency makes the Swiss economy in a better position to tackle rising inflation, generated mainly by high oil prices and raw materials, but the appreciation of the Swiss franc comes at a price high: the industry. In fact, Mr. Amman on Swiss economy minister has repeatedly stressed that will be taken to protect the Swiss industry is going to see his phenomenal rise in export prices in the coming months.
Whether good or bad for any country to have a strong currency will remain a matter of balance. What we have seen over the years clearly suggests that currency prices follow a cyclical pattern in which prices are extremely unlikely to be sustained for long.
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