Location of Switzerland between several large European states.
Switzerland is a federation of 26 cantons with a large degree of autonomy, with the federal government maintaining a very low profile. The Alpine country is one of the most prosperous countries in the world, mostly known for its offshore financial services but it also hosts many multinational companies.
History
The area now known as Switzerland became part of the Holy Roman Empire in the Middle Ages. Around 1300 a number of Swiss counties started to form a confederation. One of these was Schwyz, which is still a Swiss canton and from which Switzerland derives its name.
At the end of the Thirty Year War (1618-1648), during which most of Europe was at war with each other, the Holy Roman Empire recognised the independence of the Swiss Confederation. It became a home for German and French protestants who fled the catholic parts of their homelands during the Contrareformation.
In 1798 Napoleon invaded Switzerland and turned it into a French client state named the Helvetic Republic. This republic was so unpopular with the Swiss that Napoleon restored the Swiss Confederation in 1803. After Napoleon's defeat (1815) the Confederation regained its old form.
Flag of the Helvetic Republic
The first half of the 19th century was tumultuous. In 1847 a civil war broke out with catholic majority cantons revolting against the protestant majority confederation. The revolt did not succeed but the result was the establishment of a federal republic in 1848, which still exists today.
Switzerland became a strictly neutral country and did not participate in both world wars. During the Second World War the country was under a lot of pressure being surrounded by Axis-controlled territories. Swiss policies, aimed at preserving neutrality, were rather controversial. On the one hand Swizerland hosted a large number of refugees, but it also helped financing Axis initiatives.
After World War 2 Switzerland maintained its neutrality and did not join NATO nor the EU or its predecessors. Despite, or rather becaususe of it, Switzerland has the highest military spending per capita in Europe.
The Swiss economy flourished in the 20th century thanks to its banking secrets, safe haven currency and disciplined workforce. Besides a large financial sector, Switzerland is home to companies like Nestle, pharmaceutical giants and known for its high-end Swiss watches. The advanced Swiss economy attracts many skilled foreign workers from all over the world. Switzerland is also home to a large number of international organisations, with the second largest UN office located in Geneva.
Currency
The Swiss cantons maintained their own currencies and monetary systems up to 1848. The old systems were generally based on Thalers which were worth a variable amount of Batzen, each worth 4 Kreuzer.
The first nationwide Swiss currency was the Franc introduced by the French-controlled Helvetic Republic. This Swiss Franc was divided in 10 Batzen or 100 Centimes (German: Rappen) and worth 1.5 French Francs.
After the Napoleonic era many cantons continued issuance of their own Franc based on that of the Helvetic Republic, although some reverted to Thaler based systems used before.
With the establishment of the Federal Republic in 1848 a new national currency was introduced in 1850. This Swiss Franc was at par with French Franc and followed the standards of the Latin Monetary Union. At that time it was worth 25.22 Francs to Pound Sterling and 5.18 Francs to the US Dollar.
Remaining neutral during both World Wars made the Swiss Franc the safest currency in the world. The gold standard was only adjusted in 1936 following a 30% devaluation that occurred on a global level during the Great Depression. After World War 2 the Franc joined Bretton Woods at a rate of 4.3 Francs per US Dollar.
After Nixon suspended the gold standard in 1971 the Swiss Franc started appreciating rapidly, especially during the inflationary pressures of the 1970's. The Franc's value reached 2 SFr/$ by the late 70's and also gained value against all other currencies, including the Deutschmark. The effects of the Global Financial Crisis (2008) made the Franc appreciate further, becoming worth more than a US Dollar for the first time in 2007. It also appreciated versus the Euro from 1.6/€ to 1.1/€ until the Swiss National Bank intervened in 2011 by establishing a minimum value for Euro at 1 2 Francs. This floor only lasted until early 2015, when the central bank surprisingly abandoned its floor causing a shockwave to international FX markets with the Franc appreciating more than 20% and becoming worth more than a Euro for the first time in history. The Swiss National Bank responded by settong record low negative interest rates which has eased the upward pressure on the Franc over the years. It currently trades close to parity with the US Dollar and 1.16 to the Euro.
Coins
Helvetian Republic (1798-1803)
Coins of 1 Rappen, ½, 1, 5, 10, 20 and 40 Batzen, 4, 16 and 32 Franken were issued as the first national coinage of Switzerland.
Federal Republic (1850-date)
In 1850 a series of 1, 2, 5, 10 and 20 Rappen together with ½, 1, 2 and 5 Francs replaced the local coinage of the Swiss cantons. The reverses of 5 Rappen through 2 Francs is still being used for modern Swiss coinage, but the obverses initially featured a Swiss shield on the billon coins and a sitting lady Helvetia on the silvers. In the 1870's these obverses were updated with a design featuring a standing Helvetia with a shield surrounded by 22 stars (23 stars from 1983) symbolising the cantons. Apart from some composition changes, these designs still circulate today in Switzerland, the longest lasting series of coinage in the world.
The 1 and 2 Rappen designs were updated in 1939. Their usage stopped in the 1970's. The 5 Francs was redesigned in 1911 and reduced in size in 1931. Gold coins of 10, 20 and 100 Francs were used until the devaluation in 1936.
https://en.numista.com/catalogue/suisse-1.html