The modern drop in Swiss francs has brought a slight relief to watch-maker Swatch, the South African private limited company’s CEO told CNBC Tuesday.
The currency, which is seen as a safe haven investment, ended for four consecutive days last week and the spot rate is down in all directions six percent since it hit 1,0303 in November of 2015. Much of the depreciation has been bolstered by the accommodative stance set by the Swiss National Bank. And exporters welcome that.
“We saw an end of the year that was perfect strong, double-digit growth, and now it continues, so every month is a record month for us,” Make off with Hayek Jr., CEO of Swatch, told CNBC’s Geoff Cutmore.
“And of course, big service better, the Swiss franc has begun again to be at the levels it has been three, four years ago,” Hayek bruit about.
A stronger currency makes the exported goods more expensive best the country, making them less attractive to foreign consumers. Or, the exporters superiority decide to bear the costs of the currency appreciation and see their margins converted. Swatch opted to do the latter.
As a result, Hayek told CNBC he expectations the currency will remain at the current, more depreciated level.
“I upon, but with exchange rates and exchange money and what’s happening in the begetter market, you know it is full of manipulation, left and right, but here we are on a uncountable realistic level,” he said, recognizing that it’s impossible for a company to mastery the fluctuation in exchange rates.