Swatch CEO concerned about surge in value of Swiss franc

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 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."

-John Revill/Reuters