About the Swiss Franc
The Swiss franc is the currency of Switzerland and Liechtenstein, issued by the Swiss National Bank. It is one of the world's main safe-haven currencies: in times of market stress, investors tend to buy francs, and the franc tends to strengthen.
The franc floats, but the Swiss National Bank has a long record of acting against a franc it judges too strong. From 2011 to January 2015 it held a minimum rate of 1.20 francs per euro, and when it dropped that floor without warning the franc jumped by around 20% in minutes. It kept its policy rate below zero from 2015 to 2022.
The SNB defines price stability as inflation below 2%, and it reviews monetary policy once a quarter. Because inflation in Switzerland is usually lower than in the euro area, the franc has tended to gain value against the euro over the long run.
Paying in CHF
- IBAN and QR-IBAN
- Swiss accounts are identified by an IBAN, which starts CH and is 21 characters long. Some invoices carry a QR-IBAN instead: it looks like a normal IBAN, but is only valid together with the QR reference printed on the same bill.
- QR-bills
- Swiss invoices come with a QR-bill, which replaced the old orange and red payment slips in 2022. The QR code holds the account, amount and reference. From abroad, copy the IBAN and the reference exactly as printed.
- Domestic clearing
- Franc payments between Swiss banks settle in SIC, the Swiss Interbank Clearing system run for the Swiss National Bank. Instant payments in francs started in August 2024, and every Swiss bank that handles retail payments must be able to receive them by the end of 2026.
- Euros in Switzerland
- Switzerland is in SEPA, so euro payments to a Swiss account can go as SEPA transfers. Many Swiss businesses hold euro accounts as well as franc accounts, so check which currency an invoice should be paid in.
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