In today’s fast-changing financial environment, relying solely on the U.S. dollar can leave your wealth exposed to unexpected risks. With inflationary pressures, rising national debt, and increasing geopolitical uncertainty, many Americans are reevaluating how and where they hold their assets. Currency diversification is one simple but powerful strategy to protect your purchasing power—and the Swiss Franc (CHF) is increasingly viewed as a smart option.

The Risk of Relying Solely on the U.S. Dollar

The U.S. dollar has long stood as the dominant global reserve currency, a cornerstone of international finance and trade. However, its status is not guaranteed indefinitely. Over time, the dollar has steadily lost purchasing power—since 1971, it has declined by over 85% according to the U.S. Bureau of Labor Statistics’ Consumer Price Index data. While some inflation is natural in a growing economy, persistent inflation reduces the real value of savings, affecting retirees and long-term investors most severely.

More recently, macroeconomic concerns have compounded these risks. The U.S. national debt continues to climb at a record pace, now exceeding $37 trillion. Rising interest rates, while meant to curb inflation, have also increased the government’s cost of borrowing and strained consumers. Meanwhile, the Federal Reserve’s aggressive monetary policies over the past two decades have expanded the money supply dramatically, raising concerns about long-term dollar stability.

Beyond domestic challenges, the dollar’s dominance on the global stage is also under quiet but steady pressure. Countries such as China, Russia, and Brazil have taken steps to settle trade agreements in non-dollar currencies. This trend, often referred to as “de-dollarization,” is gradually reducing the greenback’s share of global foreign exchange reserves. According to the International Monetary Fund, the U.S. dollar now accounts for just under 60% of global reserves, down from over 70% two decades ago.

Reports from The Economist have highlighted how geopolitical shifts, such as the expansion of BRICS nations and new central bank digital currencies, are challenging the dollar’s role in global trade. At the same time, the Bank for International Settlements reports an increase in trading volumes involving non-USD currency pairs, indicating growing demand for alternatives in the foreign exchange market.

For U.S. investors, keeping all assets in USD creates a single point of risk. If inflation accelerates or confidence in the U.S. economy weakens, the real value of those holdings could diminish significantly.

Why the Swiss Franc Stands Out

Among global currencies, the Swiss Franc (CHF) has earned a reputation as one of the most stable and resilient. Often referred to as a “safe haven,” it is widely favored by conservative investors seeking protection from global volatility, inflation, and geopolitical risk.

This reputation is not accidental. The strength of the Swiss Franc is rooted in Switzerland’s long-standing commitment to financial and political stability. The country is known for its neutrality, low levels of public debt, and strong legal protections for private property. As of 2024, Switzerland’s debt-to-GDP ratio is below 40%—one of the lowest in the developed world—compared to over 120% for the United States. This fiscal prudence supports investor confidence in the Swiss currency over the long term.

The Swiss National Bank (SNB), Switzerland’s central bank, also plays a key role in maintaining price stability. Unlike many central banks that have aggressively expanded their balance sheets in recent years, the SNB has taken a cautious and measured approach. Its primary mandate is to ensure price stability, and it has a track record of maintaining low inflation and preserving purchasing power.

During times of global crisis—such as the 2008 financial crash, the eurozone debt crisis, and the COVID-19 pandemic—the Swiss Franc typically appreciated as investors moved their capital into what they perceived as safer assets. The International Monetary Fund (IMF) and the Bank for International Settlements (BIS) both classify the CHF as a safe-haven currency, citing its consistent value performance and low volatility.

Additionally, Switzerland’s globally respected financial sector adds further strength to its currency. With Zurich and Geneva regularly ranked among the world’s top financial centers, Switzerland offers a robust banking infrastructure, strict regulatory standards, and strong privacy laws. These qualities support continued demand for CHF-denominated assets, especially among high-net-worth individuals and institutional investors.

In contrast to the U.S. dollar, which has been under pressure from rising debt and inflation, the Swiss Franc offers a more predictable store of value. For investors seeking long-term capital preservation—not just returns—CHF is a compelling choice.

Benefits of Currency Diversification for U.S. Investors

For U.S. investors, relying entirely on the dollar may feel familiar and convenient—but it also introduces concentration risk that can quietly undermine long-term financial security. Currency diversification offers a practical way to reduce this risk by spreading your wealth across multiple economic systems and currencies. It creates a buffer against inflation, market volatility, and shifts in domestic policy that can impact the real value of your savings.

Currency diversification is also a gateway to international investment opportunities. It enables you to take advantage of growth in markets beyond the U.S., while often gaining access to sectors and companies that aren’t available through domestic investments alone. This broader exposure can strengthen your portfolio by lowering its overall correlation to U.S. market movements and by offering greater flexibility in times of economic stress.

Importantly, diversifying into foreign currencies helps hedge against risks that may not be obvious today but could emerge over time. Economic shifts don’t always come with warning signs. Having a portion of your assets held in other stable currencies ensures that you’re better prepared for unexpected disruptions, whether they’re triggered by global events or domestic policy decisions.

Ultimately, currency diversification is not about betting against the dollar—it’s about building a more balanced, resilient portfolio. For conservative investors focused on long-term wealth preservation, it offers peace of mind that their assets are protected, not just from today’s risks, but also from the uncertainties of tomorrow.

How to Diversify Into Swiss Francs Legally and Safely

The good news for Americans is that currency diversification is legal—as long as it’s done correctly. Working with a Swiss-based, SEC-registered asset manager like WHVP allows you to hold Swiss Francs and other foreign currencies in a compliant and secure manner. We open private bank accounts for our clients in Switzerland and construct portfolios that can include CHF-denominated assets, helping reduce exposure to the U.S. dollar.

Before shifting into foreign currencies, there are some important considerations. First, you should understand the costs associated with currency exchange and how it fits into your broader investment strategy. Also, U.S. tax laws require that foreign financial accounts be reported, including through FBAR and FATCA. At WHVP, we’re not tax advisors, but we work closely with U.S. tax professionals and can connect you to trusted partners to help with compliance.

At WHVP, we’ve spent over three decades helping Americans move part of their wealth offshore in a safe, legal, and strategic way. As a licensed Swiss investment advisory firm registered with the SEC, we specialize in creating international portfolios that protect and preserve wealth. Currency diversification plays a key role in our approach, and we work closely with each client to determine if—and how—the Swiss Franc should be part of their plan.

Is It Time to Add the Swiss Franc to Your Strategy?

The financial landscape is shifting, and sticking with a single-currency approach may no longer offer the security it once did. Diversifying into the Swiss Franc can bring stability, global exposure, and long-term value to your portfolio. If you’re ready to explore how CHF or other foreign currencies can support your goals, we invite you to schedule a free consultation with our team. We’ll guide you through the process and help you make confident, well-informed decisions about protecting your wealth.