The Swiss Franc currently holds this title: Meaning people exchange their money to CHF saving these in CHF. They don’t buy CHF to spend it, they invest in it to keep in their savings. When global markets face wars, financial crashes, or political panic, investors move their money into CHF protecting it from losing value. I know the US Dollar is the most traded globally, but why can’t it be deemed a safe haven for investors during crisis?

The reason why CHF manages to remain stable holding the title of safe haven:

  • Political Neutrality: Switzerland stays out of foreign wars and international political conflicts.
  • Economic Stability: Switzerland has a strong legal system, secure property rights, steady economic growth.
  • Low Inflation: Prices in Switzerland rise slower, this helps the money retain its purchasing power.
  • Trade Surplus: Switzerland consistently sells more goods and services abroad than buying from others.
  • Strong Banking Sector: Swiss banks are well-capitalized and have a long reputation for safety.

Now when you compare what with USD that prevent it from being a safe haven:

  • USA meddles too much in wars happening overseas and foreign policy of other countries
  • Economic situation in the USA is volatile and a broken legal system & unsecure property rights
  • Inflation is high in the USA, prices skyrocket a lot while losing its purchasing power over time
  • USA buys more goods & services from abroad than exporting their own to other countries
  • US banks face criticisms regarding risk management, fees, and occasional high-profile failures

Is it even worth saving money in US Dollars when inflation is BAD in America? Do YOU think it’ll retain its purchasing power overtime given the current political climate and financial infrastructure? You hear a lot about $100 doesn’t feel much like it once did, like $100 could buy you a lot in the 60s at the grocery store but today that barely scratches a few items on the cart. Switzerland’s highest denomination is CHF 1000 ($1237).

Currently, it is not a safe haven: as there’s issues within America making it difficult for investors on having confidence whether it’ll retain its value over a long time if they decided to store their money on a US Bank to be withdrawn during crisis (i.e. expensive fees in US banks, high inflation and corrupt government). What really has to change in America for the US Dollar to override Swiss Franc on being the “safe haven” for investors?