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Swiss Franc is on a more 'realistic' level, says Swatch CEO

  • The currency, which is seen as a safe haven investment, dropped for four consecutive days last week and the spot rate is down about six percent since it hit 1,0303 in November of 2015.
  • A stronger currency makes the exported goods more expensive outside the country, making them less attractive to foreign consumers.

The recent drop in Swiss francs has brought a slight relief to watch-maker Swatch, the company's CEO told CNBC Tuesday.

The currency, which is seen as a safe haven investment, dropped for four consecutive days last week and the spot rate is down about six percent since it hit 1,0303 in November of 2015. Much of the depreciation has been supported by the accommodative stance set by the Swiss National Bank. And exporters welcome that.

"We saw an end of the year that was very strong, double-digit growth, and now it continues, so every month is a record month for us," Nick Hayek Jr., CEO of Swatch, told CNBC's Geoff Cutmore.

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"And of course, big advantage, the Swiss franc has begun again to be at the levels it has been three, four years ago," Hayek said.

A stronger currency makes the exported goods more expensive outside the country, making them less attractive to foreign consumers. Or, the exporters might decide to bear the costs of the currency appreciation and see their margins reduced. Swatch opted to do the latter.

As a result, Hayek told CNBC he hopes the currency will remain at the current, more depreciated level.

"I hope, but with exchange rates and exchange money and what's happening in the stock market, you know it is full of manipulation, left and right, but here we are on a more realistic level," he said, recognizing that it's impossible for a company to control the fluctuation in exchange rates.