Switzerland will put into circulation on March 13 a new 1,000-franc bill or, in other words, a piece of paper that can be exchanged for just over 880 euros. With this decision, the Swiss leaders once again show that their decisions are not influenced by global financial trends. While other central banks such as the European one are putting a stop to higher denomination banknotes (to fight against fraud), in Switzerland these banknotes are likely to remain active for a long time.
In the case of Europe, for example, the 500 euro banknotes (and other central banks) this January 27, 2019, although they are still legal tender, so they can continue to circulate and be used as a means of payment and store of value. , as announced by the European Central Bank (ECB). The objective is to finish off these bills little by little.
In Switzerland, however, they seem to be quite comfortable with these high denomination notes. Fritz Zurbruegg, vice president of the Swiss National Bank (SNB), assures that “there are no indications that the risks are high… in Switzerland the 1,000-franc note is used as a normal means of payment.”
In Switzerland, the banking paradise, cash continues to be one of the preferred means of payment for citizens. One of the latest surveys carried out by the SNB shows that even for the largest payments, many Swiss prefer to pay with notes and coins, while payment by applications is practically non-existent.
store of value
However, from UBS they point out that only 40% of the Swiss population has had a 1,000-franc note in their hands in the last two years. Even so, this paper is accepted even in some restaurants to pay the bill.
UBS experts explain that the 1,000-franc banknote never exceeds 62% of the value of all banknotes in circulation: “Many people do not use this banknote to buy, but to keep it at home or in a safe as a store of value With low interest rates, this strategy wins.”
Facebook Comments
Disqus