Are Euros Used in Switzerland?

Tourists and international businesses will be familiar with the convenient, cost-effective, and hassle-free experience the euro offers. Despite its many advantages, not all European countries use the euro; so does Switzerland use the euro, and if not, what does it use?

The short answer to this question is no; Switzerland has its own currency. However, some businesses also accept euros. This has implications for international visitors and entrepreneurs who plan to set up a business in Switzerland.

Can You Pay in Euros in Switzerland?

Visitors will find many places where they can transact in euros in Switzerland. Major shops and department stores, hotels, restaurants, and tourist-focused businesses will usually accept euros. Keep in mind, however, that the exchange rate will probably be expensive and your change will be given in Swiss francs.

Currency in Switzerland

The official currency of Switzerland is the Swiss franc (CHF). As a country outside the EU, Switzerland has control over its currency and monetary policy. The Swiss National Bank decides the rate of currency. The ability of the Swiss government to keep inflation low means the Swiss franc has appreciated considerably against other currencies.

What Are the Different Denominations of CHF?

CHF consists of a combination of banknotes and coins. Their denominations are as follows:

Banknotes

Banknotes come in denominations of 10, 20, 50, 100, 200, and 1000 francs.

Coins

Coins come both in rappen (Swiss alternative to cents) and francs. Their denominations are 5, 10, 20, and 50 rappen and 1, 2, and 5 francs.

Do Swiss Companies Conduct Business in Swiss Francs?

Yes, many Swiss companies conduct business in Swiss francs. However, Swiss francs are much more important for importers and companies with a domestic focus than for exporters.

According to a 2024 survey by Credit Suisse, the Swiss franc is the most important currency for sales in 54% of companies in Switzerland. However, this changes drastically depending on the business type:

• Only 17% of exporters claim the Swiss franc is the most important currency. This compares with 93% of importers.
• 83% of domestically operating businesses said CHF is the most important currency for them.

Many entrepreneurs searching for the top banks in Switzerland for foreigners opt for multi-currency bank accounts. This facilitates seamless business operations in more than one currency. However, it’s also possible for foreigners to set up a business account only in CHF.

Multi-Currency Solutions for Businesses

For businesses with an international focus, offering multi-currency solutions is the best way to cover all your bases both for domestic and international markets.

Setting up a multi-currency merchant services account with an integrated global payment gateway allows your business to accept a wide range of currencies and payment methods. This flexibility allows you to adapt to your customers’ needs and facilitates seamless relations with businesses across the globe.

History of Currency in Switzerland

The Swiss franc has a rich history that leads up to the present day. Until the end of the 18th century, around 75 separate bodies were responsible for minting coins. As a result, 860 currencies came to be in circulation in Switzerland. With the transaction process simply too chaotic to continue in the same vein, the Swiss Federal Government became the official issuer of Swiss currency; this led to the introduction of the currently used Swiss franc in 1850.

After that:

• In 1865, Switzerland formed the Latin Monetary Union with France, Italy, and Belgium. All four countries adopted the silver standard.
• In 1945, Switzerland became part of the Bretton Woods system until the 1970s. This meant the value of the Swiss franc was pegged to the US dollar.
• Switzerland later adopted the gold standard, which it maintained until the year 2000.
• From 2003-2006, the Swiss franc was stable against the euro.
• In 2015, the Swiss National Bank abandoned its peg to the euro. This caused the Swiss franc to float, causing havoc on stock and forex markets. However, the value of the Swiss franc soared.

Currency Tips for International Visitors While in Switzerland

Managing currency while travelling in Switzerland will largely depend on how long (or how often) you plan to be in the country.

• Using euros can be a sound option if you’re only passing through. This is particularly true if you’ve already exchanged your country’s currency to visit Europe.
• It’s preferable to carry some CHF in cash. Don’t take it for granted that everyone accepts euros and have a back-up option if you need to pay in Swiss francs.
• Check the exchange rate if you decide to change money as it will vary from place to place.
• Credit and debit cards are widely used and accepted in Switzerland. However, remember that transactions will be subject to bank charges and currency exchange rates.
• Withdrawing cash from an ATM is cheaper using a debit card than a credit card.

FAQs

There are many interesting facets to the question of national currency in Switzerland and Europe as a whole. We cover some of them here.

Why Hasn’t Switzerland Adopted the Euro?

Switzerland hasn’t adopted the euro because it’s not part of the European Union. Switzerland borders five EU countries that use the European single currency, but the Swiss population has rejected EU membership on several occasions. This means that they have never had to relinquish their own currency.

Is It Easy to Do Business with the EU from Switzerland?

It’s very easy to do business with the EU from Switzerland. This will be a relief if you are interested in starting a business in Switzerland. Switzerland uses bilateral treaties to gain access to the Schengen area, the common market, and research, among other benefits. In other words, Switzerland participates in the most important aspects of European integration without giving up any of its sovereignty.

In 2022, Swiss exports to the EU amounted to CHF 90 billion. CHF 85 billion of imports from the EU came into Switzerland in the same year. If you choose to set up a business in Switzerland, systems are already in place to allow seamless business relations with the EU.

Is Switzerland the Only European Country with Its Own Currency?

No, several European countries currently have their own currency. These countries are split into two groups: those in the European Union but not part of the Eurozone and countries outside the European Union.

The euro is the official currency in 20 out of the 27 EU member countries. Bulgaria, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden currently don’t use the euro.

Other European countries like Switzerland and the United Kingdom, which aren’t in the EU, also use their own currency.

Is the Swiss Franc Stronger than the Euro?

Yes, the Swiss franc is stronger than the euro and is considered one of the strongest currencies in the world. Inflation has stayed consistently lower in Switzerland than in other countries. This has led to the appreciation of the franc against other currencies like the euro.

What Is the Best Currency to Take to Switzerland?

You can take euros or U.S. dollars to Switzerland and exchange them for Swiss francs once you arrive. Alternatively, you can withdraw cash at an ATM when you arrive using a debit card. Be sure to check exchange rates and any charges your bank imposes on foreign withdrawals before withdrawing CHF to avoid surprises.

Manage Currencies Strategically in Switzerland

Conducting business in Switzerland can be a savvy move for business owners from Europe and further afield. Switzerland is uniquely placed in Europe to facilitate business in a country where innovation thrives and business is supported by a highly skilled workforce and a strong economy.

Whether you are visiting Switzerland temporarily or plan to start a business there in the future, it’s essential to understand the country’s currency as well as payment methods used in Switzerland. You can generally get by with euros if you’re staying in major cities and tourist areas. However, long-term residents and people who plan to go beyond the major hotels and restaurants should plan to carry and use Swiss francs to avoid any payment issues and ensure they get the best deal.