The Swiss industry is calling on the country's Central Bank to focus on the Swiss franc exchange rate, which negatively affects their profits as the global economy cools and demand falls.
Over the past year, the Swiss franc, considered as a safe haven asset, has grown significantly against the dollar and the euro, which has reduced import price pressure, but created problems for exporters who are already facing slacker business from Germany and China.
"The SNB should take into account the economic situation, and this naturally includes mitigating the effects of currency shocks on industry. We will never tell the SNB what it should do. However, we expect the SNB to take into account - within its mandate - the situation in the export industry," said Stefan Brupbacher, director of Swissmem, which represents large manufacturers.
"The strengthening of the franc came at the worst moment, when firms were struggling for new orders after a weak 2023. And at the moment we are seeing an increase in the euro exchange rate by 5-7%, which makes Swiss products more expensive. It also negatively affects the profits of companies," Martin Hirzel, president at Swissmem.
According to Swissmem, foreign orders fell by 9.1% last year, while the Swiss manufacturing PMI has been in contraction territory for a year now.