Swiss National Bank

Special stamps for 100th Anniversary

A stable currency is one of the key prerequisites for economic prosperity. As custodian of the Swiss franc, the Swiss National Bank is responsible for ensuring price stability. It will be celebrating its centenary in 2007, and two special Swiss postage stamps are being issued in its honor.
The Central Banks of most countries developed out of the former note-issuing institutions. These had the sole right to issue banknotes and had to adjust their circulation to commercial requirements. At the time when many banknote-issuing banks were founded, gold was still the focus of monetary policy, and banknotes were regarded merely as a monetary substitute. However, now the money created by the Central Banks in the form of banknotes or bank money plays the decisive role.
More note-issuing banks previously The Swiss National Bank is almost sixty years younger than the federal state which was founded in 1848.

National Bank

In the 1848 Constitution, the Cantons transferred the monopoly for minting coins to the Confederation, but notes continued to be issued by various private and cantonal banks, and in 1880, there were a total of 36 such issuing institutions in Switzerland. It was not until 1891 that the sole right to issue banknotes was transferred to the Confederation, which, under the terms of the Constitution, could cede the note-issuing monopoly to either a State bank or to an incorporated bank subject to State supervision. In 1905, the Swiss Parliament decided setting up a note-issuing bank in the form of a joint-stock company, and two years later, the National Bank started operating.
Swiss citizens can have a holding in their National Bank because its shares are quoted on the stock market. Approximately two thirds of the shares are owned by the Cantons, Cantonal Banks and other corporations regulated by public law while the rest are in private hands. The Confederation holds none of the shares.

Stable prices as a priority

The Swiss National Bank enjoys independence in conducting the country's domestic and foreign monetary policy. It is obliged by Switzerland's Constitution and its laws to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates the fundamental conditions for economic growth.
Price stability is an essential prerequisite for growth and prosperity. Inflation and deflation inhibit the decisions of consumers and producers, disrupt economic development and put the economically weak at a disadvantage. The National Bank equates price stability with a rise in the national consumer price index of less than 2% per annum. Monetary policy decisions are made on the basis of a regularly published inflation forecast and implemented by steering the rate of interest for three-month Swiss-franc investments, the three-month Libor.

Banknotes of a high standard

The National Bank supplies the economy with banknotes that meet high quality and security standards and is also mandated by the Confederation to distribute coinage. Together with the banks and Swiss Post, the National Bank is a key monetary transaction system agency. In the field of cash-less payments, it provides services for high-value exchanges between banks. Such payments are transacted in the Swiss Interbank Clearing system (SIC) via the National Bank's giro accounts.
Managing foreign currency reserves is also part of the National Bank's remit. The Swiss Constitution instructs it to constitute sufficient foreign currency reserves to ensure confidence in the Swiss franc and to help prevent or overcome crises. Such reserves may be utilized for interventions in the foreign exchange market.

Postage stamps in detail

Issue: Switzerland, 6 March 2007
Design: Jörg Zintzmeyer, Zollikon
Printing: 5-color offset by Tesa Bandfix AG, Bergdietikon
Stamp size: 56x27.5 mm Sheet: 203x 139 mm
Perforation Serpentine cut

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