Swiss Franc Surge Threatens Swiss Industry, Says Swatch CEO

Swatch Group CEO Nick Hayek has raised concerns over the Swiss franc's appreciation, warning it risks Swiss industry competitiveness. He criticizes the Swiss National Bank's inaction, fearing U.S. accusations of currency manipulation. Smaller firms may relocate or close, jeopardizing Switzerland's industrial expertise. Swatch also seeks tariff reimbursements from the U.S.

Swatch Group CEO Nick Hayek has raised alarms regarding the surging strength of the Swiss franc, a development reported by Swiss broadcaster SRF. The currency's appreciation has reached an 11-year peak against the euro, and continues to rise against the dollar, threatening the cost-effectiveness of Swiss products abroad and squeezing manufacturing profit margins.

Hayek, whose company boasts iconic watch brands like Longines, Omega, and Tissot, criticized the Swiss National Bank (SNB) for its lack of intervention, attributing their silence to fears of being labeled as currency manipulators by the U.S. government. 'We don't oppose a strong franc,' Hayek stated to SRF, 'but its current level is unsustainable for domestic manufacturing.'

In defense, SNB Chairman Martin Schlegel reiterated the central bank's willingness to intervene in the forex market to curb excessive currency gains. He acknowledged the struggles of exporters and warned about the potential relocation or closure of smaller manufacturers. Meanwhile, Swatch seeks reimbursement for tariffs paid under the Trump administration, hoping for multimillion-dollar refunds.

(With inputs from agencies.)