Swiss francs – history that built trust

he Swiss franc has a relatively short history, because its origins date back to the turn of the 18th and 19th centuries. It was officially introduced in 1850, replacing local currencies of different denominations and origins, issued by dozens of independent entities. Under the Swiss federal constitution, only one entity, i.e. the central bank, was given the right to issue francs. The Swiss National Bank, which operates as a joint-stock company and has been privately owned since 2015, is responsible for monetary policy, including decisions affecting the Swiss franc exchange rate.

The franc was initially pegged to silver, and from 1920 also to gold. Although the connection with gold was ultimately severed in 1936, the franc remained a strong, safe and stable currency. The reason for this was, among others, that until 2000 the constitution guaranteed the coverage of 40% of the value of all issued funds in the above-mentioned metal.

When the franc exchange rate rapidly strengthened in 2015, many foreign currency borrowers, who had previously enjoyed cheap mortgages in this currency, suddenly found themselves in a very difficult position and are still watching the CHF PLN pair with concern. Even now, mortgages in francs evoke extreme emotions, and questions about help for franc borrowers are still resounding in political and economic discussions.