Watches, Swiss chocolate hit by stronger franc
The stronger franc will cut sales in China of two well-known symbols of luxury from Switzerland — watches and chocolates, analysts say.
The Swiss National Bank surprised the world on Jan 15 by announcing the abandonment of its minimum exchange rate policy, which kept the euro from falling below 1.2 Swiss francs.
The SNB said in a statement that the policy, introduced in 2011, “protected the Swiss economy from serious harm” but was no longer justified because the franc had fallen sharply against the dollar due to the recent depreciation of the euro.
That decision, experts said, may be hurting international business ventures, including tourism and trade between China and Switzerland, but luxury exports to China will be hit the hardest.
Yan Xin, a senior manager at the public affairs department of Ctrip, China’s leading online travel agency, said that China’s tourism in the country is unlikely to be affected because Switzerland is not a popular travel destination for the China’s nouveau rich.