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The franc ( and Legal Tender of Switzerland and Liechtenstein . Franc Banknotes are issued by the Central Bank of Switzerland, the Swiss National Bank , while Coins are issued by the federal mint, Swissmint . The Swiss franc is the only version of the Franc still issued in Europe. Its name in the four official languages of Switzerland is ''Franken'' ( German ), ''franc'' ( French and Rhaeto-Romanic ), and ''franco'' ( Italian ). The smaller denomination, which is worth a hundredth of a franc, is called '' Rappen '' (Rp.) in German, ''centime'' (c.) in French, ''centesimo'' (ct.) in Italian and ''rap'' (rp.) in Rhaeto-Romanic. The current franc was introduced in 1850 at par with the French Franc . It replaced the different currencies of the Swiss Cantons , some of which had been using a franc (divided into 10 ''batzen'' and 100 rappen) which was worth 1½ French francs. In 1865 , France , Belgium , Italy , and Switzerland formed the Latin Monetary Union where they agreed to change their national currencies to a standard of 4.5 Gram s of silver or 0.290322 grams of gold. Even after the monetary union faded away in the 1920s and officially ended in 1927 , the Swiss franc remained on that standard until 1967 . As of January 27 , 2006 , the Swiss franc was worth US$ 0.778695 or € 0.643950. Since mid-2003, its exchange rate with the Euro has been stable at a value of about 1.55 CHF per Euro, so that the Swiss Franc has risen and fallen against the U.S. dollar in tandem with the Euro. The Swiss franc has historically been considered a Safe Haven currency with virtually zero inflation and a legal requirement that a minimum 40% is backed by Gold Reserves . Declaration of the Swiss Government, through the Federal Finance and Customs Department, and the National Bank of Switzerland regarding the purchase and sale of gold , in ''Monetary History of Gold: volume 3 — After the Gold Standard'' However this link to gold, which dates from the 1920's, was terminated on only once, on 27 September 1936 during the Great Depression , when the currency was devalued by 30% following the devaluations of the British Pound , U.S. Dollar and French Franc . Table of currency devaluations in the United States and Europe following the devaluation the pound in 1931 , in ''Monetary History of Gold: volume 3 — After the Gold Standard'' HISTORY Before 1850, about 75 entities were making coins in Switzerland, including the 25 Canton s and half-cantons, 16 cities, abbeys, resulting in about 860 different coins in circulation, with different values and denominations. Moreover, less than 15% of the money in circulation in Switzerland in 1850 was local, with the rest being foreign money, mainly brought back by mercenaries. In addition, some private banks also started issuing the first banknotes, so that in total, at least 8000 different coins and notes were in circulation at that time, making the monetary system extremely complicated.Otto Paul Wenger, p. 49–50.150 Years of swiss coinage In order to solve this problem, the new Swiss Federal Constitution of 1848 specified that the Federal Government would be the only entity allowed to make money in Switzerland. This was followed two years later by the first Federal Coinage Act, passed by the Federal Assembly on 7 May 1850, which introduced the franc as the monetary unit of Switzerland. The current franc was introduced in 1850 at par with the French Franc . It replaced the different currencies of the Swiss Cantons , some of which had been using a franc (divided into 10 ''batzen'' and 100 rappen) which was worth 1½ French francs. In 1865 , France , Belgium , Italy , and Switzerland formed the Latin Monetary Union where they agreed to change their national currencies to a standard of 4.5 Gram s of silver or 0.290322 grams of gold. Even after the monetary union faded away in the 1920s and officially ended in 1927 , the Swiss franc remained on that standard until 1967 . COINS AND BANKNOTES Swiss francs have been issued as coins since 1850 , and as banknotes since 1907 . Combinations of up to 100 usual Swiss coins (not including special or commemorative coins) are legal tender; banknotes are legal tender for any amount.Art. 3 of the Swiss law on Monetary Unit and means of payment. German , French and Italian versions. As of December 2005, the total value of released Swiss coins and banknotes was 43,834.99 millions Swiss francs.Swiss National Bank, Monthly Statistical Bulletin January 2006, A2: Banknotes and coins in circulation . Berne , January 2006 Coins The first Swiss coins were released in 1850 . Before this date, the different Swiss cantons had their own money, which different names and values. The technical details of Swiss coins, in particular the composition, have varied greatly over the years; however, the actual design of the coins has changed very little over their lifetime; for most of them (all except 5.- and 1/2 franc), their design has not changed since at least 1880 . Coins of 1/2 francs and above were made of Silver until the mid- 1960s ; at that time, the price of silver raised significantly, so that the Face Value of the 1/2, 1 and 2 francs was below the value of the metal they were made of. Some people started to sell their silver coins abroad for melting, which prompted the Federal Government to make this practice illegal, and to require a new alloy to be used for these coins. 150 Years of swiss coinage: From silver to cupronickel , on the website of Swissmint. Last accessed 2 March 2006. A 2 centimes coin also used to exist, but it was last manufactured in 1974 and is not legal tender anymore. The 1 centime coin is still produced, but it does not play any role in the monetary system anymore. People and groups who can justify the use of 1 centime coins for monetary purposes can obtain them at face value; any other user (such as collectors) must pay an additional 4 centimes per coin to cover the production costs. In 2005, the , 26 February 2006. In addition to these general circulation coins, numerous series of commemorative coins have been issued, as well as Gold Coins including the well-known '' Vreneli ''. These coins generally remain legal tender, but are not used as such because their material or collector's value usually exceeds their face value. Banknotes Since 1907 , when the first series of Swiss banknotes was printed, eight series have been printed, six of which have been released for use by the general public. The current (8th) series of banknotes was designed by Jörg Zintzmeyer around the theme of the arts and released starting in 1995 . In addition to a new design, this series was different from the previous one on several counts. Probably the most important difference from a practical point of view was that the seldom used 500 francs note was replaced by a new 200 francs note; this new note had indeed proved more successful than the old 500 francs note.The global value of 200 francs notes in circulation in 2000 (5120.0 million francs) is larger than the value of 500.- notes in 1996 (3912.30), even when these figures are corrected for the global increase in total value of Swiss banknotes in circulation (+9%). Figures from the Monthly Statistical Bulletin of the Swiss National Bank, January 2006, Op cit While the base colors of the new notes were kept similar to the old ones, so as not to disturb users, the old, Blue, 20 francs note was printed in red to prevent a frequent confusion with the 100 francs note. The size of the note was changed as well, with all notes from the 8th series having the same height (74 mm); while the widths were changed as well, they are still increasing with the value of the note. The new series contains many more security features than the previous one An overview of the security features , Swiss National Bank. Last accessed 26 February 2006.; many (but not all) of them are now visibly displayed and have been widely advertised, in contrast with the previous series where most of the features were kept secret The previous series (6th, 1976 ) designed by Ernst and Ursula Hiestand depicted personalities of sciences of the world of Science . It has been recalled and replaced and will lose any value on 1 May 2020. As of 2006, a large number of notes from this series has not yet been exchanged, even though it has not been legal tender for more than 5 years; for example, the value of 500 francs banknotes still in circulation represents 167.4 millions Swiss Francs.Swiss National Bank, Monthly Statistical Bulletin January 2006, A2: Banknotes and coins in circulation . Berne , January 2006 When the 5th series lost its validity, at the end of April 2000, the banknotes that had not been exchanged represented a total value of 244,3 millions Swiss francs; in accordance with Swiss law, this amount was transferred to the ''Swiss Fund for Emergency Losses in the case of non-insurable natural disasters''. National Bank remits Sfr 244,3 million to the Fund for Emergency Losses , press release of the Swiss National Bank, 4 May 2000. Last accessed 26 February 2006. The seventh series was printed, but is kept as a "reserve series", ready to be used if, for example, wide Counterfeiting of the current series suddenly happened. For security reasons, the Swiss National Bank has not published any description or picture of this series, apart from very small extracts. Seventh banknote series ; see http://www.snb.ch/e/banknoten/alle_serien/img/pic_siebte.gif for an extract. Last accessed 2 March 2005. In February 2005 , a competition was launched for the design of the 9th series planned to be released around 2010 on the theme ''Switzerland open to the world''. The results were announced in November 2005, but the selected design drew widespread criticisms from the population. New banknotes project , on the website of the Swiss National Bank. Last accessed 2 March 2005. SEE ALSO NOTES REFERENCES
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