CAD / CHF - Canadian Dollar / Swiss Franc

CAD to CHF Exchange Rate History: Commodity Power Meets Safe-Haven Stability

The CAD to CHF exchange rate bridges two fundamentally different economic landscapes: Canada, a resource-driven, export-oriented economy, and Switzerland, known for financial stability and its status as a global safe-haven. This pair has historically been shaped by commodity price cycles, interest rate differentials, and global risk sentiment.

1991–2000: A Volatile Relationship Forms

In the 1990s:

• Canada faced high unemployment and volatile oil prices.

• Switzerland maintained low inflation and a strong Franc anchored by conservative monetary policy.

Key movements:

• CAD/CHF traded between 0.85 and 1.15, with frequent volatility.

• The pair weakened during oil price crashes and global slowdowns.

The Franc’s safe-haven demand during crises often outweighed Canadian growth factors.

2001–2008: Commodity Boom and CHF Strength

Early 2000s marked a surge in global commodity demand:

• Canada benefited from rising oil and metal prices.

• However, CHF remained firm due to its reputation during market turbulence.

CAD/CHF fluctuated:

• Reached highs near 1.15 by 2007 amid peak oil prices.

• But CHF strengthened in late 2008 due to the financial crisis, pulling CAD/CHF down sharply.

2009–2013: Post-Crisis Adjustments

Following the global financial crisis:

• CAD recovered quickly with rising oil demand and solid banking performance.

• Switzerland battled deflationary pressures, prompting the SNB to intervene in currency markets.

Notable events:

• CAD/CHF rose to 1.00–1.10 levels in 2010–2011.

• In 2011, the Swiss National Bank (SNB) imposed a EUR/CHF floor, indirectly stabilizing CAD/CHF volatility.

2014–2019: SNB Shock and Oil Collapse

Key events dominated this period:

• January 2015: SNB abruptly removed its EUR/CHF peg, causing CHF to surge.

• Meanwhile, oil prices collapsed, hitting Canadian exports hard.

Impact on CAD/CHF:

• The pair fell sharply to 0.75–0.78 in 2015.

• Recovery remained limited due to Switzerland’s negative interest rates and ongoing oil market pressure.

2020–2024: Pandemic, Inflation, and Diverging Policies

Recent years brought pandemic-related shocks, inflation spikes, and diverging monetary policy paths.

• Bank of Canada (BoC) raised interest rates aggressively post-COVID to combat inflation.

• The Swiss National Bank (SNB) also ended negative interest rates, tightening policy in 2022.

CAD/CHF hovered between 0.65 and 0.75, reflecting:

• Weakening oil prices,

• Strength in the Franc during global uncertainty (Russia-Ukraine, Middle East),

• Limited CAD upside despite BoC hawkish stance.

✅ Key

🟢 = CAD appreciated vs CHF
❌ = CAD depreciated vs CHF
⚠️ = Mixed / stable trend

📊 CAD to CHF Exchange Rate by Decade

The CAD to CHF exchange rate remains a critical measure of commodity sensitivity versus global risk aversion. As Switzerland’s tight monetary policy aligns more closely with other central banks, the Franc may see reduced safe-haven flows, potentially allowing CAD some room for upside—provided global commodity prices stabilize.