1, Swiss National Bank

The Swiss National Bank has great independence in formulating monetary policy and exchange rate policy.

Due to the use of foreign exchange swap agreements, the management of currency liquidity is the main factor affecting the Swiss franc. If the central bank wants to expand market liquidity, it will buy foreign currencies, mainly US dollars, and sell Swiss francs, thus affecting the exchange rate.

2. Interest rate

SNB uses the change of discount rate to announce the change of monetary policy. These changes have a great influence on the currency. However, the discount rate is not often used by banks as a discount function.

3.3-month European Swiss franc deposit

Swiss franc deposits deposited in non-Swiss banks are called European Swiss franc deposits. The difference between its interest rate and the European deposit rate of other countries in the same period is also one of the factors affecting the exchange rate.

4. The role of Swiss franc as a safe haven currency.

Swiss law Swiss franc has always played the role of a safe-haven currency, because: SNB independently formulates monetary policy; The secrecy of the national banking system and the neutrality of Switzerland.

5. Economic information

The most important economic data of Eco Switzerland include: M3 money supply (broad money supply), consumer price index (CPI), unemployment rate, balance of payments, GDP and industrial production.

6, the influence of cross exchange rate

Cro, like other currencies, the change of cross exchange rate will also have an impact on the exchange rate of Swiss franc.

7. Other factors

Due to the close economic ties between Switzerland and Europe, the exchange rates of Swiss franc and euro show great positive correlation. That is, the rise of the euro will also drive the rise of the Swiss franc. The relationship between the two is the closest among all currencies.