Open Access

Determinants of the Swiss Franc Real Exchange Rate

  • Tommaso Mancini Griffoli12Email author,
  • Christoph Meyer22,
  • Jean-Marc Natal32 and
  • Attilio Zanetti42
Swiss Journal of Economics and Statistics2015151:BF03399419

Published: 2 January 2015


We conduct an empirical investigation of the determinants of the Swiss franc real exchange rate. Theory and related empirical papers suggest various specific factors as potential determinants We select some of these factors, and test their significance and magnitude in affecting the course of the CHF real exchange rate. Results stemming from a co-integration approach point to terms of trade and relative government spending as the most significant explanatory variables. Balassa-Samuelson effects do not play any significant role. Our results also confirm that this kind of empirical approach is sensitive to the choice of explanatory variables, panel countries and sample periods.

JEL Classification



real exchange rateSwiss francgovernment consumptionterms of tradenet foreign assetsGDP per capitaBalassa-SamuelsonproductivityDOLS


Authors’ Affiliations

Money and Capital Markets Department, International Monetary Fund, Washington DC, USA
Foreign Exchange and Gold Unit, Swiss National Bank, Zurich, Switzerland
Research Department, International Monetary Fund, Washington DC, USA
Economic Analysis Unit, Swiss National Bank, Zurich, Switzerland


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© Swiss Society of Economics and Statistics 2015