The Swiss franc has long been the world’s favourite safe-haven currency, and in times of geopolitical stress it tends to shine. This year is no exception.

A flight to safety

As tensions flared in the Middle East and uncertainty gripped global markets, capital flowed into Switzerland — prized for its political neutrality, stable institutions and disciplined central bank.

The Swiss National Bank (SNB) faces a familiar dilemma: a strong franc keeps imported inflation low, but it also squeezes the country’s powerful export sector, from watchmakers to pharmaceutical giants.

Winners and losers

Swiss tourists abroad and importers benefit from enhanced purchasing power. Exporters and the tourism industry at home, however, feel the pinch as Swiss goods and holidays become pricier for foreign buyers.

For the many Indian professionals and businesses with Swiss ties, the strong franc is a double-edged sword — higher salaries in real terms, but a steeper cost of living in one of the world’s most expensive countries.