Swissie definition
Swissie
Swissie, or swissy, is the nickname for the Swiss franc, the official currency of Switzerland. It is also used in foreign exchange trading in reference to the USD/CHF (US dollar/Swiss franc) currency pair.
The Swiss franc has considerable strength from Switzerland’s position as a key banking figure in Europe known for its neutrality in global conflicts. The nation upholds strict and discreet banking practices that make it popular among foreign investors, lending value to the swissie as a currency.
Swissie and the European Debt Crisis
The European Debt Crisis is an infamous time in the swissie’s recent history and resulted in its peg to the euro. The European Debt Crisis began in 2010 and caused the Euro to depreciate against the Swiss franc.
Even though Switzerland never joined the European Union and adopted the euro, the swissie’s rapid appreciation against the plummeting euro caused Switzerland’s exports and tourism industry to become too expensive for other Europeans.
As a result, capital stopped flowing into Switzerland, and unemployment rose in the country. Eventually, the Swiss National Bank (SNB) pegged its currency to the euro at a rate of 1.2 swissies for every 1 euro to help balance their economies.