100 years ago Liechtenstein embraced the Swiss franc

On April 11, 1924, the Principality of Liechtenstein officially adopted the Swiss franc as its legal tender, abandoning the Austrian krone. This decision, along with the customs union with Switzerland, laid the foundation for considerable economic development in the state, despite its small size.

 

 

100 Jahre Schweizer Franken im Fürstentum Liechtenstein
100 Jahre Schweizer Franken im Fürstentum Liechtenstein
The Customs Union Agreement of 1923 marked the accession of the Principality of Liechtenstein to the Swiss economic space, followed a year later by the adoption of the Swiss currency. Both steps were necessary because of the circumstances induced by World War I, which hit Liechtenstein hard because of its close connection with Austria. The latter’s military defeat led to the collapse of the value of the Austrian krone in 1918.
Although Liechtenstein initially attempted to introduce its own currency, it became clear that the principality, with a population of less than 12,000 at the time, was too small to do so. Moreover, the population was already using the Swiss franc as a means of payment in daily life around 1920, demonstrating a practical adherence to the Swiss currency that outweighed political decisions.The main impetus behind this change was industry, which preferred to be paid in the stable Swiss currency rather than the inflation-prone krone. This change occurred years before its legal formalization, causing difficulties for those who received their wages in kroner but had to deal with the cost of living in francs.
An important initial step toward the adoption of Swiss currency was Liechtenstein’s setting of taxes, tariffs, fees and fines in francs. Further significant developments include the postal contract with Switzerland in 1920 and the issuance of Liechtenstein stamps in francs in 1921.The state budget has been managed partly in francs since 1919 and completely in francs since 1922.
The formal introduction of the franc by the Liechtenstein parliament as the sole currency in the country took place in April 1924, with the consent of Switzerland.This transition laid the foundation for Liechtenstein’s current economic prosperity, transforming it from a struggling country to an extraordinarily prosperous one.
Although a formal monetary agreement with Switzerland was not signed until 1980, the Swiss franc remains indispensable to Liechtenstein. The centennial celebration of this historic event, is an opportunity to reflect on this success story and recognize the fundamental role of the Swiss franc in Liechtenstein’s history and economy.

This centennial marks the end of a 100-year-long series of celebrations covering a watershed period for Liechtenstein. This period includes important events such as the adoption of the Constitution in 1921, the conclusion of the customs treaty in 1923, and the introduction of the Swiss franc in 1924.

Today the small principality can be happy about the decisions made in those contexts.

Thanks to the Swiss franc, purchasing power has grown rapidly

The stability of the currency has spurred rapid economic development in Liechtenstein, which currently tops the per capita purchasing power ranking in Europe, surpassing even Switzerland.

100 Years of Switzerland-Liechtenstein Customs Treaty

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Excellent bilateral relations between Switzerland and Liechtenstein

Commemorative coins for the centenary of “100 years of the Swiss Franc in Liechtenstein”

To mark the centenary of the adoption of the Swiss Franc in the Principality of Liechtenstein, Liechtensteinische Post AG has asked the government to issue a set of commemorative coins. This set includes two gold coins and four silver coins. The issuance of the coins is fully managed by Liechtensteinische Post AG, which also bears the financial risk.

According to Article 2(2) of the Monetary Treaty between the Principality of Liechtenstein and Switzerland, the government has the power to issue Swiss franc coins subject to the approval of the Swiss Federal Department of Finance. The issuance of these coins is based on a special law, as has been the case with previous commemorative coin issues.

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