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Swiss Franc Trade-Weighted Index, Performance Far Worse than Dollar Index

 

The Swiss Franc index is the trade-weighted currency performance

2016: Update

On a three years interval, the Swiss Franc had a weak performance. The dollar index was far stronger.

Contrary to popular believe, the CHF index gained only 1.73% in 2015. It lost 9.52% in 2014, when the dollar  strongly improved.

 

 

Swiss Franc Currency Index 3Y 20160709 Trade weighted

Swiss Franc Index 2009-2012

The CHF Trade-Weighted Index (click link on Unciatrends) shows how the Swissie has moved against a basket of other currencies weighted by their share in the Swiss trade.

A similar figure, the export-weighted real exchange rate, can be found equally inside the SNB’s bi-weekly IMF data. Based on the 1999 base year (=100), the October 2012 value was 111.5, the November 2013 value 111.4.

Trade-Weighted CHF 2009-2013

Trade-Weighting: Swiss Exports by Country

The typical basket for the trade-weighted index is the export basket. The total of the euro share is around 45%. Details on the theory behind can be found here.

Dollar and (near) dollar- pegged countries are around 30%.

  • United States 11%
  • Middle East 4.3%
  • Hong Kong 3.4%
  • China 3.7%
  • A big part of Other World (11.6%)

Swiss Exports By Country

Swiss Exports By Country - Click to enlarge

 

George Dorgan

George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers.
George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.

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