Maybe the watch is in the wallet because the wallet is empty. Why? Because he spent all his money buying a new watch. Why? Because this morning he read a note in the sugar, that he had written himself the night before while very drunk, explaining that he would need to buy a new watch. Why? Because his watch was in the wine. Meanwhile, his wife is still in the fridge with the elephant and their butterflies are loose all over the place.
Maybe in Italian a "portafoglio" implies a (usually) leather carrier, whether pocket sized or briefcase-sized. It's that way in Czech, where I was told my hard-sided briefcase wouldn't be called a briefcase, but a "little suitcase" (kufr'ik). They think of a briefcase as the soft-sided kind.