SINGAPORE – More Singapore residents are buying the Swiss currency as global uncertainty drives demand for safe-haven assets, with trading platforms here reporting a rise in purchases in recent years.
Data from trading platforms CMC Markets and Saxo showed increased interest in the Swiss franc among investors in the Republic, amid geopolitical tensions and volatility across asset classes such as equities and precious metals.
Analysts said the Swiss franc is regarded as a global safe-haven currency, while the Singdollar is seen more as a defensive currency within Asia.
According to CMC Markets, trading turnover in Swiss franc pairs, or trades involving the Swiss currency against other major currencies, among its Singapore users surged from US$380.26 million (S$483.98 million) in January 2025 to a peak of US$1.05 billion by mid-2025.
The surge coincided with a US market sell-off in July 2025, triggered by disappointing earnings from major technology and artificial intelligence firms.
Overall, CMC Markets recorded a 22.21 per cent year-on-year increase in Swiss franc pair trading in 2025 compared with 2024.
The platform also highlighted that the Swiss franc’s appreciation has continued into 2026, with trading volumes rising to US$1.02 billion in January as investors rotated back into the currency after precious metals came under pressure following a sharp rally.
The Swiss franc was trading at about 0.61 franc to the Singdollar on May 17, near its all-time high of around 0.60 recorded in January.
The currency rose 7.81 per cent against the Singdollar in 2025 and has edged up a further 0.37 per cent so far in 2026, according to Bloomberg data.
Meanwhile, Saxo Singapore said trades in the Republic involving the Swiss franc surged 280 per cent in 2025 from 2024 levels on its platform.
Swiss franc currency pairs also rose about 8 per cent quarter on quarter from the fourth quarter of 2025 to the first quarter of 2026, driven largely by the spike in January.
Ms Charu Chanana, chief investment strategist at Saxo Singapore, said that in today’s environment of geopolitical risk and imported inflation, the Singdollar can look like a safe haven within Asia, while the Swiss franc remains the global safe haven.
“The difference is that the Swiss franc is driven more by fear, while the Singdollar is driven more by policy credibility and stability,” she added.
She said the Swiss franc still has some of the “strongest safe-haven credentials” among major currencies due to Switzerland’s low inflation, political neutrality, strong institutions and long track record of preserving wealth.
But she noted that the Swiss National Bank has signalled that it is prepared to step in if the franc strengthens too quickly, as a stronger currency can hurt exporters and weigh on inflation.
“The Swiss franc remains a safe haven, but it is now a managed safe haven,” said Ms Chanana.
While the Singdollar is viewed as a defensive currency in Asia, it is not considered a global safe-haven asset in the same way as the Swiss franc or the US dollar.
“Singapore has strong macro credibility given its triple A sovereign profile, large reserves, current-account strength, political stability, rule of law and its role as a financial hub,” said Ms Chanana.
“But the Singdollar is still an open-economy, trade-sensitive Asian currency – in a global recession or deep Asia growth shock, it may hold up better than most regional peers, but it can still get hurt.”
The Monetary Authority of Singapore on April 14 tightened its monetary policy stance for the first time since 2022 to allow for a stronger currency in the face of soaring oil and natural gas prices from the Iran war.
The central bank said it will “increase slightly the rate of appreciation of the S$NEER policy band”. This refers to the exchange rate of the Singapore dollar against a trade-weighted basket of currencies from the Republic’s major trading partners.
Mr Eric Xiao, head of sales (Asia) at CMC Markets, said the Swiss franc remains one of the world’s premier safe-haven currencies due to its deep liquidity and strong global trading volumes.
“Switzerland’s large capital base helps minimise foreign exchange volatility and market friction during periods of macroeconomic stress,” he said.
Mr Xiao added that the Swiss franc also attracts significantly higher trading volumes than “regional” safe havens such as the Singdollar.
“This was reflected across CMC Markets’ global client base in January 2026, when Swiss franc trade flows hit $2.66 billion, vastly outpacing the $606.92 million recorded for the Singdollar,” he said.
