UNITED STATES DOLLAR
The United States Dollar is one of the most widely used currency in the world, both as an official currency and for international trade outside US borders. The Dollar is divided into 100 units called pennies or cents.
The U.S. GDP of $15 trillion constitutes 23% of global GDP to exchange rates and market more than 20% of global GDP in purchasing power parity according to the International Monetary fund.Although larger than any other nation, its GDP is 5% smaller than the GDP of the European Union in purchasing power parity in 2008.The country ranks ninth in the world in nominal GDP per capita and sixth in GDP per capita in PPP. The United States Dollar is the main global reserve currency.
-The first Dollar coin issued by the United States Mint was similar in size and composition to the Spanish Dollar. The Spanish Dollar remained legal until 1857.The United States Dollar was defined by the Coinage Act of 1792.The early currency did not display faces of the presidents, as it does now. George Washington did not want his face to be on the currency.
The official currency of Switzerland is the Swiss Franc (CHF). The Franc is subdivided into 100 centimes. Fr. Banknotes is the symbol used for the Franc. They are issued by the Swiss National Bank and coins are issued by the Swiss Mint.
The economy is dependent on foreign investments.The unemployment rate is estimated at 3%.The main industries are watches, chemicals, textiles, machinery, and precision instruments.Export products are agricultural products, metals, chemicals, watches, and machinery.Import products are vehicles, metals, textiles, machinery, and agricultural products.Switzerland’s tourism infrastructure is highly developed.The country is neutral and is not part of the European Union.
In 1850, the first Swiss Franc was introduced; it was on par with the French Franc.Switzerland made a decision to become part of the Brent Wood System in 1945. The Franc was tagged to the US Dollar at 4.375 Francs = 1 USD.In 2008, the Swiss Franc currency was larger than the USD.In 2010, the 9th series of Francs was introduced.
The USD/CHF is affected by various factors that dominate the value of the U.S. dollar or the Swiss franc which is related to each other and other currencies. Due to this reason, the interest rate differential between the Federal Reserve (Fed) and the Swiss National Bank (SNB) will affect the value of these currencies when compared to each other. When the Fed arbitrates in open market activities to make the U.S. dollar stronger, for example, the value of the USD/CHF cross could increase, due to a strengthening of the U.S. dollar when compared to the Swiss franc.
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