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Forecast: How will the swiss franc to euro exchange rate evolve in 2025?

Clock icon3 minutes|Updated on 16.01.2025

Author: Quentin Arts

As we step into 2025, the EUR/CHF exchange rate continues to reflect similar economic, monetary, and geopolitical dynamics as in 2024. Here’s how to better understand these fluctuations and optimize your currency exchange operations.

January 2025 Overview

  • Current EUR/CHF Rate: Between 0.933 and 0.943.
  • Expected rate by the end of January: 0.94.
  • Context: The Swiss franc remains a safe haven amidst geopolitical tensions and a fragile economic recovery in the eurozone.

Key Highlights from 2024

  • EUR/CHF fluctuations: Between 0.9247 and 0.99.
  • The Swiss National Bank (SNB) lowered its key interest rate to 0.5% in December, with inflation in Switzerland stable at 0.6%.
    Sources: Investing.com, SWI.ch.
  • The European Central Bank (ECB) maintained its key rate at 3%, with eurozone inflation stable at 2.4%.
    Source: FX Empire.

Reasons Behind EUR/CHF Fluctuations

Key Economic Factors

  • Inflation:
    • In Switzerland: Low inflation (0.6%) supporting a strong franc.
    • In the eurozone: Stable but fragile inflation (2.4%).
  • Interest Rate Decisions:
    • The SNB adopts a cautious approach to prevent overvaluation of the franc.
    • The ECB maintains high rates to control inflation.

Central Bank Impact

  • SNB: Lowered its key rate to 0.5% to support exporters and stabilize the economy.
  • ECB: Maintained its rate at 3% to curb inflation while supporting weak growth.

Geopolitical Influences

  • Tensions in Ukraine and the Middle East reinforce the Swiss franc’s safe-haven status.
  • The eurozone remains vulnerable to economic and geopolitical uncertainties.

When and How to Exchange?

  • Stay Informed: Regularly follow updates from the Swiss National Bank (SNB) and the European Central Bank (ECB).
  • Use ibani for Your Exchange: With ibani, enjoy competitive exchange rates, transparent fees, and a Swiss IBAN to simplify cross-border transactions.
  • Set Up Alerts: Get notifications via the ibani app to exchange at your target rate.
  • Compare Options: Use our detailed comparison tool to identify the best solution for your needs.
  • Protect Against Fluctuations: Multi-currency accounts help minimize exchange rate risks while streamlining international transactions.
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  • Our transfer fees: CHF 0
  • Our exchange margin: 0.50%
  • Final exchange rate: 1.1636
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Conclusion

Although the future of the EUR/CHF exchange rate is uncertain, current trends indicate that the Swiss franc is likely to strengthen further against the euro over the long term. Keeping up with decisions from the SNB and ECB allows you to better navigate market movements. By using a currency exchange app like ibani and staying informed in real time, you can optimize your transactions and minimize your exchange costs effectively.

Note: This article is for informational purposes only and does not constitute investment advice or a recommendation.

FAQ

Several expert projections indicate that the EUR/CHF exchange rate could reach 0.94 by the end of January 2025.

The best time to exchange Swiss francs for euros depends on the exchange rate trends and your financial situation. Generally, it is beneficial to monitor market trends and make exchanges when the rate is favorable. Consulting financial experts or using forecasting tools can also help determine the optimal time for currency exchanges.

Buying Swiss francs can be a good strategy if you anticipate an appreciation of the currency due to economic uncertainty or geopolitical events. However, it is essential to consider economic forecasts and consult financial advisors before making a decision, as the currency market can be volatile and unpredictable.

The Swiss franc often rises during periods of economic or political uncertainty, as it is considered a safe-haven currency. Investors turn to the CHF to protect their assets from risks associated with more volatile currencies. Factors like prudent monetary policies of the Swiss National Bank, low inflation, and Switzerland's economic stability also contribute to the strength of the Swiss franc.

Cross-border workers regularly transfer their salaries between Switzerland and Eurozone countries. A favorable exchange rate can increase their purchasing power in euros.

Businesses can use forward contracts and currency options to lock in rates in advance, diversify their sources of income and expenses in different currencies, and use currency converters like ibani to manage conversions between their international accounts.

ibani offers low exchange rates and reduced fees, allowing you to maximize the amounts converted during currency exchanges. Additionally, the platform is easy to use and provides complete transparency on margins.

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