Switzerland’s Unstoppable Franc Brings Fresh Pain to Exporters

Franc Strength Raises Exporter Concerns

The Swiss franc is now back as Swiss exporters’ top worry, replacing US tariffs, according to a January survey by Switzerland Global Enterprise. A strong franc is undermining the competitiveness of Swiss exporters, with trade groups warning that the rise in the currency is hurting businesses that earn revenues abroad but incur most of their costs in Switzerland.

Market Dynamics and Global Impact

The franc is near the strongest in more than a decade against the euro and the US dollar, driven by the war in Iran pushing money into haven assets. This surge has created significant pressure on Swiss exporters, especially small and medium-sized enterprises (SMEs).

Policy and Economic Dilemma

The central bank faces a policy dilemma as the strong franc threatens export competitiveness. While the Swiss government has maintained a stable currency, the economic impact on businesses is growing, with some companies reporting reduced sales and market share.

Historical Context and Trade Surplus

Switzerland’s 2025 record trade surplus to the US of 55 billion francs ($47 billion), excluding gold transfers, has raised concerns about the long-term sustainability of its economic model and the impact of currency strength on international trade.

Outlook and Future Trends

Despite current pressures, some analysts suggest that a relatively weak franc may benefit Swiss exporters in the medium term, with economic, monetary, and technical factors indicating a potential shift in the currency’s trajectory.

來源：https://www.swissinfo.ch/eng/switzerlands-unstoppable-franc-brings-fresh-pain-to-exporters/91096474