Safe Haven

Safe Haven Meaning:
In foreign exchange terminology, a Safe Haven can refer to a currency, usually the Swiss Franc, the value of which tends to increase during times of trouble. Events that would tend to provoke a significant movement into a safe haven currency might include: foreign and civil wars, other forms of social unrest, political uncertainty, economic turmoil and widespread bank failures.

Safe Haven Example:
The Swiss Franc is the primary currency that benefits from safe haven cash flows, largely due to Switzerland’s traditional political neutrality and the stability of its banking system. Nevertheless, commodities such as Gold also provide another traditional Safe Haven often sought during troubled times.