The Swiss Federal Council is considering extending the time to exchange notes of the previous issue. Every 15 or 20 years the Swiss National Bank issues a new family of notes, with the previous one being withdrawn from circulation some six months afterward. Then a 20 years period is given for the redemption of the retired notes.
But considering that people live longer, and that Swiss francs have become a “refuge” currency across the world, now the government and the Swiss National Bank are studying the possibility of extending the time for redemption, or making their withdrawn notes redeemable without time limit.
This measure will affect the Fund that covers insured natural causes damages, which used to receive from the Swiss Natioal Bank the value of the unredeemed notes. It now hay 269 million francs, which is deemed to be more than sufficient to cover any forseeable losses.
©2017 Monetary Research Institute
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