The Swiss franc celebrates its 175th anniversary this Wednesday. When it was created in 1850, there was no predict that the Swiss motto would become one of the most popular and strongest currencies in the world.
On May 7, 1850, the federal law on federal currencies entered into force, thus establishing the Swiss franc as money. The Confederation was then content to exercise its sovereignty over the currency. It was not until 1907 that the Swiss National Bank (BNS), endowed with the program monopoly, started its activities.
Ernst Baltensperger, professor emeritus of political economy, considers in his book on the Swiss franc the creation of the latter as the decisive event of Swiss monetary history of the 19th century. Previously, the Swiss monetary system was characterized by a profusion of various parts and currencies.
The introduction of the Swiss franc constitutes an important aspect of the unification of the Swiss economic space, according to the SNB. The Federal Constitution of 1848 also abolished the cantonal customs duties and transferred them to the borders of Switzerland, unified the weights and measures and centralized postal services.
-Integration into the French system
Before the introduction of the Swiss franc, the most diverse currencies were in force, which made trafficking in payments ineffective. “In 1850, Switzerland did not create its own currency, but integrated into the French monetary system,” explains the BNS. In 1865, she joined the Latin monetary union, of which France, Belgium, Italy and later Greece was a part.
The creation of the BNS in 1905/06 marks an important step in the nationalization of money in Switzerland. This was formally completed in 1927, with the end of the Latin monetary union, written the BNS.
The Swiss franc is today a stable and therefore appreciated placement currency. According to the BNS, it will keep in the future central importance for Switzerland because of its stability.
ats/iar
