Finance
Swatch CEO Concerned About Surge in Value of Swiss Franc
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 19, 2026
Swatch Group CEO Nick Hayek warned that the Swiss franc's surge—reaching 11‑year highs—threatens domestic manufacturing by making exports costlier. He criticized the SNB for its silence amid fears of U.S. retaliation, and flagged that smaller firms might relocate or close.
ZURICH, March 19 (Reuters) - Swatch Group 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 risen to 11-year highs against the euro, and has also 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.
"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."
The SNB, which is due to announce its latest monetary policy decision later on Thursday, declined to comment.
Earlier this the central month said it was more willing to intervene in foreign currency markets to check a rapid and excessive appreciation of the franc.
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)
Nick Hayek is concerned the franc's appreciation makes Swiss products more expensive abroad, squeezing profit margins and threatening domestic industry.
The strong franc increases export prices, reduces competitiveness, and could force smaller firms to move production abroad or shut down.
According to Hayek, the Swiss National Bank has not addressed the issue publicly, fearing accusations of currency manipulation.
Yes, Swatch Group seeks reimbursement for U.S. duties paid due to tariffs, with potential refunds in the tens of millions.
Hayek stressed that a struggling industry affects apprenticeships, factories, and the know-how needed to maintain manufacturing in Switzerland.
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