Exchanging Swiss francs for euros: when should you take action?
Whether you want to exchange currency for personal use or on behalf of your business, doing so at the right time is essential. However, when it comes to deciding when to exchange currency, several questions arise.
What criteria should you consider to make the right choice? What constraints need to be taken into account? What will be the consequences of your decision? Here are a few points to help guide your thinking.
Opening hours
Depending on whether you use a physical branch (such as a bank or currency exchange office) or an online platform (such as your bank’s online banking portal or an online currency exchange service), the times at which you can access the foreign exchange market will vary.
In practice, the opening hours and days of a currency exchange bureau can vary depending on the area; it is therefore best to check in advance rather than make a wasted trip!
Nevertheless, the safest option is still to use the services of an online currency exchange provider. This way, you can carry out your currency exchange transactions at any time of the day or night, from anywhere in the world and without any time constraints.
Processing times and fund transfers
Opening hours are not the only factor to consider: the time taken to complete a transaction must also be taken into account.
Once again, opting for an online currency exchange service will reduce the processing time to a maximum of 48 hours (whereas some high street banks and branches may take longer to complete these procedures).
In any case, it is wiser to plan ahead, especially if you have a specific deadline; avoid rushing into things at all costs!
Of course, a currency exchange bureau will provide you with cash immediately and in person, but electronic transactions are often preferred these days, for both practical and security reasons.
Timing
Thursday 4 March marked the day in 2021 when the EUR/CHF exchange rate was at its least favourable for anyone wishing to convert Swiss francs into euros. On that day, one Swiss franc would have fetched just 89 euro cents, compared with 96 euro cents on 4 December of the same year…
Looking back at the EUR/CHF exchange rate history is one thing, but on a day-to-day basis, unless you have a crystal ball, how can you determine the best time to exchange your currency?
Unfortunately, whether you’re an individual or a business, there’s no magic formula for predicting the future of the foreign exchange market. The best time to act is therefore the one that suits your own needs!
If you are a business and have a clear picture of your future needs, you should be aware that you can already lock in a future exchange rate using forward rates. Admittedly, your business will then no longer be able to benefit from any favourable movements in the exchange rate, but it will also, and above all, be protected against the risk of unfavourable movements (currency risk).
Frequency
Given the currency exchange fees involved in a conversion transaction, the best approach is, above all, to minimise the frequency with which you carry out currency exchange transactions.
In fact, whether you use a bank, a currency exchange bureau or an online money transfer service, you will have to pay fees and commissions (which often decrease depending on the amount transferred).
Consequently, the more you can consolidate the amounts to be converted, the more you’ll be able to make significant savings!
The best time to exchange your Swiss francs for euros depends both on fluctuations in the EUR/CHF exchange rate and on your individual circumstances. Moreover, as well as timing your exchange carefully, you should also consider how to minimise the fees and commissions associated with your currency exchange transactions.
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