Swatch CEO concerned about surge in value of Swiss franc (updated)

Swatch groupAG

19/03/2026 12:09

*    Swiss franc has hit 11-year highs vs euro, risen vs
dollar     

        *    Strength makes Swiss products pricier for foreign
buyers     

        *    CEO says central bank fears Washington's disapproval   
 

        *    SNB says more ready to intervene against franc strength
    

  
 (Adds SNB comments in paragraphs 6-8)
    By John Revill
       ZURICH, March 19 (Reuters) - Swatch Group  UHR.S  CEO
Nick Hayek has expressed concern about the strength of the Swiss
franc, Swiss broadcaster SRF reported, saying the safe-haven
currency's appreciation was putting domestic industry at risk.
    The franc has recently hit 11-year highs against the euro
and has continued to appreciate against the dollar, making Swiss
products more expensive abroad and squeezing manufacturers'
profit margins.
    Hayek, whose company owns watch brands including Longines,
Omega and Tissot, accused the Swiss National Bank of not
responding to the appreciation for fear of being branded a
currency manipulator by Washington.
    
    CURRENT STRENGTH OF SWISS FRANC 'EXCESSIVE', CEO SAYS
    "We have nothing against a strong Swiss franc," Hayek told
SRF. "But its current strength against all currencies is so
excessive that it's becoming impossible to continue
manufacturing industrial products in this country."
    "My concern is that the Swiss National Bank isn't
recognising the problem," he added. "It's remaining silent,
fearing that Donald Trump might see it as a currency manipulator
and punish it with higher tariffs."
    SNB Chairman Martin Schlegel on Thursday repeated the
central bank's increased willingness to intervene in foreign
currency markets to curb a rapid and excessive appreciation of
the franc.
    The SNB was in close contact with Swiss exporters and was
aware of their problems, he told reporters when asked about
Hayek's comments.
    "The SNB has great respect for companies that have to hold
their own every day on the international market," he said. "We
are well aware that this is not an easy task."
    
    SMALLER MANUFACTURERS 'COULD BE PUSHED ABROAD', HAYEK WARNS
    Hayek warned that smaller manufacturers could be forced to
move production abroad or shut down.
    "When industry struggles, the whole country suffers. It's
about the social fabric: apprentices, factories, the know-how to
manufacture a product in Switzerland. I don't want to do without
that," he said. 
    Swatch Group was also seeking reimbursement for U.S. customs
duties paid under tariffs imposed by President Donald Trump,
with potential refunds amounting to tens of millions, Hayek
said.
    "Everyone wants to get back unjustly paid customs duties.
Our branches in America are already working on it, together with
our lawyers," Hayek said.
    "In the end, we're talking about refunds in the tens of
millions, and the chances are good that we'll get it back."

 (Reporting by John Revill; Editing by Kate Mayberry and Jan
Harvey)
 ((mailto:John.Revill@thomsonreuters.com; +41 41 528 36 37;
Reuters Messaging:
rm://john.revill.thomsonreuters.com@reuters.net/))