Swiss Franc in Foreign Exchange: Outline
A. Purpose: Examine foreign exchange policy and application in Switzerland.
(1) Historical overview of policy and process.
(3) Responsibility for development and application of foreign exchange policy.
(4) IMF role in setting foreign exchange rate for Swiss franc.
II. An Historical Overview of the Policy and Process of Setting the Value of the Swiss Franc in Foreign Exchange Markets.
A. Gold standard prior to first World War.
B. Catastrophic conditions in inter-war period.
E. Moving to the flexible exchange rate system.
F. Switzerland=s importance as a monetary power.
H. Capital inflow as a problem for exchange rate policy.
I. Contemporary Swiss currency exchange rate policy.
III. Status of the Swiss Franc As a Unified or Dual Rate Currency in Relation to Foreign Exchange.
IV. The Role of the IMF in Determining Foreign Exchange Rates for the Swiss Franc.
A. Stable currency in a strong economy.
This research examines foreign exchange rate policy and its application in Switzerland. Four issues provide the focus for this research. The first issue involves an historical overview of the policy and process of setting the value of the Swiss franc in foreign exchange markets. The second issue involves the status of the Swiss franc as a unified rate currency or as a dual or multiple rate currency in relation to foreign exchange. The third issue concerns the responsibility for the development and administration of foreign exchange policy for the Swiss franc. The fourth issue concerns any role that the International Monetary fund (IMF) has played, at any time, in determining foreign exchange rates for the Swiss franc. While these four issues are interrelated, they are addressed separately in this report.
An Historical Overview of the Policy and Process of Setting the Value of the Swiss Franc in Foreign Exchange Markets
The gold stand...