# Commerzbank Analysis Reveals How High Franc Exchange Rates Impact Key Swiss Export Sectors Differently

> Commerzbank analyst Michael Pfister highlights that excluding precious metals reveals structural market share losses for Switzerland's pharmaceutical and chemical exports due to a strong franc.

**Type:** article · **Category:** Market · **Published:** 2026-08-25 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/commerzbank-vishleshan-majboot-swiss-franc-se-switzerland-ke-pharma-aur-chemical-niryat-par-pada-gambhir-asar-21689 · **Language:** English
**Tags:** Swiss Franc, Swiss Exports, Commerzbank, Chinese Yuan, Forex Market, Bitcoin, European Central Bank

The continued appreciation of the Swiss Franc (CHF) alongside an undervalued Chinese Yuan (CNY) has created distinct pressures across Switzerland's export economy. According to a detailed structural evaluation by Commerzbank analyst Michael Pfister, headline export numbers mask significant underlying shifts. While overall top-line market share figures suggest strength, stripping out precious metals trading exposes genuine market share losses across key industrial sectors, notably pharmaceuticals and chemicals, while luxury watchmakers remain largely insulated.

## The Distortion of Precious Metals on Trade Figures
On paper, Swiss trade performance between 2019 and 2024 appeared robust, with the country securing net market share gains across its primary international destinations. This positive trend holds true even when incorporating 2025 data, a period distorted by US trade tariffs. However, this headline growth is heavily skewed by the precious metals sector. Once gold and silver transactions are excluded from the equation, Switzerland has, on average, experienced a net decline in market share across its top export markets over the same period.

## Pharmaceutical and Chemical Sector Vulnerabilities
The impact varies dramatically depending on the specific product category. In medicines, which represents Switzerland's largest export bracket, Swiss firms have seen widespread market share erosion since 2019, with some segments recording double-digit percentage declines. Notably, while China recorded minor gains in this space, the vast majority of lost Swiss market share was captured by competitors in other developed nations. This indicates that currency dynamics with China are not the primary driver of weakness in pharmaceuticals, but rather broader international rivalry.

Conversely, the chemical manufacturing sector paints a very different picture. In this category, China has emerged as the clear beneficiary, rapidly gaining market share at the direct expense of Swiss suppliers as well as other global producers. Here, the combined effect of a strong Swiss Franc and a weak Chinese Yuan has exerted a clear price competitiveness disadvantage on Swiss exporters.

## Watch Industry Resilience and FX Market Trends
Despite the headwinds faced by chemicals and pharmaceuticals, Switzerland's famed watchmaking industry has demonstrated remarkable resilience. The sector shows minimal sensitivity to the appreciation of the franc, proving that high-end luxury products with strong brand power can absorb currency-driven price spikes without sacrificing market share.

Broader foreign exchange markets are simultaneously reflecting complex macroeconomic forces. The GBP/USD currency pair has entered a period of sideways consolidation around the 1.3630 level during Asian trading, as the US Dollar attempts a modest recovery from its lowest levels since May 14. Meanwhile, EUR/USD trades near 1.1670. Eurozone inflation concerns are being fueled by rising crude oil prices, elevated sovereign bond yields, and heightened tensions in the Middle East. These factors reinforce market expectations that the European Central Bank (ECB) will deliver a 25-basis-point interest rate hike at its September meeting.

## Cryptocurrency Surge and US Treasury Operations
In digital asset markets, sustained risk-on sentiment has propelled Bitcoin (BTC) firmly above the $80,000 threshold. Crypto assets are drawing support as investors monitor efforts by the US Treasury to stabilize long-term borrowing costs. Over the past 24 hours, Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) have surfaced as standout gainers within the altcoin space.

Simultaneously, the US Treasury Department announced a major adjustment to its liquidity management schedule. Effective September 9 through November 4, the department will double the maximum size of its bond buyback operations in the 10-to-20-year and 20-to-30-year maturity sectors, raising the cap from $2 billion to at least $4 billion per operation. This proactive step aims to reinforce market depth amid persistent bond yield volatility.

## What this means for you
**Global Trade Impact:** The persistent strength of the Swiss Franc directly influences European export pricing and competitive market dynamics worldwide.

**For Investors:** Central bank rate hike expectations in Europe alongside expanded US Treasury buybacks will likely drive ongoing volatility across currency, bond, and crypto markets.

## Questions & Answers

### 1. Which Swiss sectors are most vulnerable to the strong Swiss Franc?
Chemicals and pharmaceuticals have suffered notable market share losses, whereas the luxury watch sector remains largely resilient.

### 2. Is China responsible for the decline in Swiss medicine exports?
No, while Swiss pharma market share declined, the majority of that share was captured by competitors from countries other than China.

### 3. What rate action is expected from the European Central Bank in September?
Rising energy prices and bond yields have raised expectations for a 25-basis-point rate hike by the ECB in September.

### 4. What change did the US Treasury announce for its buyback operations?
The US Treasury will increase its liquidity support buyback limit from $2 billion to at least $4 billion per operation between September 9 and November 4.

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