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

Clock icon3 minutes|Updated on 25.04.2025

Author: Quentin Arts

On April 11, 2025, the EUR/CHF exchange rate reached a new yearly low of 0.923. Since the start of the year, the significant fluctuations of this currency pair have been mainly driven by the escalating global geopolitical tensions, which are having a strong impact on currency markets. To better understand the evolution and fluctuations of the EUR/CHF exchange rate, here is our forecast analysis along with some tips to optimize your foreign exchange transactions.

April 2025 Overview

  • The EUR/CHF exchange rate reached a new yearly low of 0.923 on April 11.
  • High volatility observed since the beginning of April, with fluctuations between 0.923 and 0.958.
  • EUR/CHF rate projection: If current trends continue, the exchange rate is expected to stabilize around 0.93 by the end of April.

March 2025 Overview

  • The EUR/CHF exchange rate fluctuated between 0.936 and 0.964.
  • Gradual U.S. withdrawal from the Russia-Ukraine conflict: The European Union is working to strengthen its strategic autonomy in response to shifting geopolitical dynamics.
  • Announcement of a European defense budget: This initiative aims to support the euro against the Swiss franc by boosting market confidence.
  • The Swiss National Bank (SNB) has set its policy rate at 0.25% since March 21, 2025. This is the fifth consecutive rate cut since the beginning of 2024.
  • Impact on the Swiss franc: The rate cut is expected to increase demand for the CHF as a safe-haven currency, especially amid ongoing geopolitical uncertainties.

February 2025 Overview

  • The EUR/CHF rate fluctuated between 0.933 and 0.951.

January 2025 Overview

  • The EUR/CHF exchange rate fluctuated between 0.934 and 0.951.
  • The European Central Bank (ECB) lowered its key interest rate to 2.75% on January 30, 2025.
    Source: European Central Bank.

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 (0.3%) supporting a strong franc.
    • In the eurozone: Stable but fragile inflation (2.2%).
  • 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 interest rate to 0.25% on March 21, 2025, to support Swiss exporters and stabilize the economy.
  • ECB: Lowered its key interest rate to 2.5% on March 12, 2025, to curb inflation and stimulate economic growth in the Eurozone.

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.
  • The new U.S. policy is pushing the European Union to seek greater strategic autonomy.

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 in your name 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 0.93 by the end of April 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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