Foreign airlines, yesterday, pushed back on the recent upward review of Rate of Exchange (RoE) and attendant spike in the cost of international air travel, saying they were induced by the Central Bank’s exchange rate and local market volatility. The clearing house for over 290 world airlines, IATA, in a statement Monday, reiterated that airfares for international flights from Nigeria are denominated in U.S. “These conversions use the official prevailing exchange rate provided by the country’s financial system. “IATA simply applies the spot rate at which the Central Bank of Nigeria sells USD through banks to the market, at its fortnightly retail foreign exchange auctions. if the rate at which the CBN sells USD goes up, the exchange rate applied to airfares will follow and vice versa,” IATA said.

Source: The Guardian May 16, 2023 04:51 UTC