The Swiss franc (CHF) is a well-known and respected currency worldwide, often considered a safe-haven asset due to its stability and low inflation rates. However, some people may wonder why the Swiss franc is referred to as CHF. This article aims to provide a detailed answer to this question.
The Latin Name:
The official Latin name for the Swiss franc is Francus Helveticus, which translates to “Swiss Franc” in English. The abbreviation for Francus Helveticus is CHF, which is derived from the Latin name.
Historical Reasons:
Switzerland is a multilingual country, with four official languages: German, French, Italian, and Romansh. To avoid favoring one language over the other, Switzerland decided to use Latin as the language of currency names. Hence, the Latin name Francus Helveticus was used, which eventually led to the CHF abbreviation.
International Currency Code:
In addition to the abbreviation, the International Organization for Standardization (ISO) has assigned a three-letter currency code to the Swiss franc, which is also CHF. This code is used in financial markets worldwide to identify the Swiss franc and to facilitate international transactions.
Other Currency Abbreviations:
The use of Latin for currency names is not unique to Switzerland. Other countries that use Latin-based currency names include Romania (RON), Mexico (MXN), and Cuba (CUP), among others.
In conclusion, the abbreviation CHF for the Swiss franc is derived from the Latin name Francus Helveticus. Switzerland’s use of Latin as the language of currency names and the ISO’s assignment of the CHF currency code have contributed to the widespread use of CHF as the abbreviation for the Swiss franc in financial markets worldwide.
