Swatch boss claims it has become 'impossible' to manufacture in Switzerland: 'The whole country is suffering'
Nick Hayek, CEO of Swatch Group, has sounded the alarm about the excessive strengthening of the Swiss franc, saying the appreciation of the safe-haven currency in times of geopolitical turmoil is putting Switzerland's domestic industry at risk, Reuters reports.
Even before the start of the Middle East war, the Swiss franc hit 11-year highs against the euro and the dollar in 2026 and continued to appreciate against the US dollar, making Swiss goods more expensive in foreign markets and squeezing manufacturers' profit margins.
Hayek, whose company owns watch brands such as Longines, Omega and Tissot, accused the Swiss National Bank, the country's central bank, of not reacting to the appreciation for fear of being accused by Washington of currency manipulation.
“We have nothing against a strong Swiss franc,” Hayek told Swiss public broadcaster SRF. “But its present strength against all currencies is so excessive that it becomes impossible to continue the production of industrial goods in this country,” he added.
Swatch chief accuses Switzerland's central bank of fearing Washington
“My concern is that the Swiss National Bank is not admitting the problem,” continued Nick Hayek in comments made to SRF. “She remains silent, fearing that Donald Trump might consider her a currency manipulator and sanction her with higher customs duties,” the Swatch boss charged.
His comments come as the US Treasury announced in late January that it was strengthening its oversight of countries' currency practices, including interventions to prevent the dollar from depreciating or appreciating.
While refraining from accusing any major US trading partner of manipulation, the Washington Treasury has kept Switzerland and 9 other countries on a list of states it says require special attention because of foreign exchange practices.
Martin Schlegel, the central bank's president, reiterated on Thursday its increased willingness to intervene in currency markets to limit a rapid and excessive appreciation of the franc.
Asked about Hayek's comments, Schlegel said the institution he heads is in close contact with Swiss exporters and is aware of their problems.
“Swiss National Bank has great respect for companies that have to maintain themselves on the international market every day,” he added. “We are fully aware that it is not an easy task,” the president of the central bank said.
Warning that small producers may leave Switzerland
Hayek warned that smaller manufacturers could be forced to move production overseas or close down.
“When the industry struggles, the whole country suffers. It's about the social fabric: apprentices, factories, the know-how needed to make a product in Switzerland. I don't want us to give that up,” he said.
Hayek also said that Swatch Group is also seeking reimbursement of US customs duties paid because of tariffs imposed by President Donald Trump and declared illegal by the Supreme Court in Washington last month. The head of Swatch said the amounts that could be recovered are in the tens of millions of dollars for his company.
“Everyone wants to recover wrongly paid customs duties. Our subsidiaries in America are already working on this, together with our lawyers,” Hayek said.
“At the end of the day, we're talking about tens of millions in refunds, and chances are good we'll get them back,” he concluded.
