In this column, contributors share their views on economic and financial issues.
Switzerland is one of the world’s most open economies. A significant share of our prosperity is built on our ability to export high-quality products made by people whose expertise is recognized far beyond our national borders.
Yet this strength is increasingly being tested by a familiar challenge: the persistent appreciation of the Swiss franc. While a strong franc reflects confidence in Switzerland, it also places a heavy burden on export-oriented businesses. When an SME sells its products in euros or U.S. dollars but pays wages, suppliers, rent and taxes in Swiss francs, every further appreciation of the franc automatically erodes its margins. The fact that inflation in Switzerland is lower than abroad, making the real appreciation less pronounced than the nominal one, offers only limited comfort.
Large multinational companies often have sophisticated tools to absorb such currency shocks. They operate production facilities in multiple countries, maintain specialized treasury departments and use complex hedging strategies.
«Export-oriented SMEs manufacture in Switzerland, employ people here and train apprentices. They are directly exposed to exchange-rate fluctuations.»
