Swiss Franc in Foreign Exchange

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

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consequence of the declining value of the dollar in international currency exchange markets, and a continuing and increasing drain on the country=s monetary gold supply, President Nixon devalued the dollar, increasing the conversion value of gold. When neither this action nor the following two-tiered price for gold were successful, the United States and the other major western industrial countries, as noted above, abandoned the fixed-rate currency exchange system, and allowed their currencies to float, or seek their own exchange rates, on the international currency exchange markets (Caramazza & Aziz, 1998, p. 9). Switzerland is one of the world=s most important financial centers. Its banking system is much larger than is necessary for domestic transactions. There are two interrelated banking networks: the state regulated system, which includes the Swiss National Bank and the cantonal (provincial) banks; and the private banking system. The Swiss National Bank, which started operations in 1907, is the only banknote-issuing institution in the country. It issues the Swiss franc (Sfr), one of the world=s leading currencies. It is controlled by the federal authorities but has the full authority of law to act independently of the g
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Some common words found in the essay are:
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Approximate Word count = 2599
Approximate Pages = 10 (250 words per page)

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