Swiss Watchmakers Urge SNB to Act on Franc Amid Export Slump
Swiss watchmakers have appealed to the Swiss National Bank (SNB) to intervene to stabilize the Swiss franc's exchange rate. This call comes in response to significant declines in export volumes that the industry has been experiencing in recent months. Watch companies express heightened concerns over the strengthening of the franc, which makes Swiss watches less competitive in international markets.
In July, Swiss watch exports dropped by 7.5% compared to the same period last year. This data was reported by the Swiss Watch Industry Association. The companies operating in Asian and U.S. markets are particularly feeling the negative impact of the exchange rate changes, as a strong franc restricts their pricing competitiveness.
Industry representatives argue that in order to maintain competitiveness and prevent further declines, SNB needs to take action in the foreign exchange markets. Possible measures may include lowering interest rates or other actions aimed at weakening the franc.
Economists also warn that the ongoing strengthening of the Swiss franc may put pressure on the entire country's economy, not just the watch sector. The conclusion drawn by market participants is that if the situation does not change, many companies in the industry could face serious financial difficulties.
As a result, many watch productions are at risk of scaling back operations, which could lead to job losses and negative repercussions for the overall Swiss economy. It is important to note that Swiss watches are known worldwide for their quality and premium status, and their success is directly tied to the national currency's exchange rate.
In conclusion, representatives from the watch manufacturing sector are urging authorities and regulators to take urgent measures to prevent worsening conditions in international markets and support this crucial sector of the economy.
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