WIR Meaning and
Definition
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WIR stands for "Wirtschaftring" in German, which translates to "economic circle" or "economic network" in English. It refers to a complementary currency system that is used in Switzerland. The WIR system was established in 1934 during the Great Depression by a group of Swiss entrepreneurs who aimed to stabilize the Swiss economy and support local businesses.
This alternative currency operates alongside the official Swiss Franc (CHF) and is only available to members of the WIR network, which primarily consists of small and medium-sized businesses. WIR acts as a means of exchange that allows businesses to trade goods and services with each other using WIR credits, which are pegged to the Swiss Franc on a 1:1 basis.
The WIR system functions through a mutual credit system, where participating businesses are given a line of credit in WIR, which they can spend within the network. WIR transactions are carried out using electronic accounts, and businesses can use WIR credits to purchase goods and services from other members of the network. This helps businesses that may be facing liquidity issues to continue trading and maintain their cash flow, especially during economic downturns.
The WIR system encourages local economic activity and fosters cooperation among its members. It provides an avenue for businesses to generate additional sales and access goods and services from fellow participants. WIR has grown over the years, and it is estimated that around 60,000 Swiss businesses participate in the WIR network today.
Common Misspellings for WIR
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