The airlines, under the aegis of the International Air Transport Association , said the exchange rate applicable to international flight tickets sold in Nigeria were not determined by the airlines as often claimed, and “it is incorrect to describe them as the IATA exchange rate”.
While stakeholders regretted that the development has further pushed international air travel beyond the reach of average Nigerians, they acknowledged the inherent respite on foreign airlines’ that are patronising the Investors and Exporters FX window for fund repatriation, and reopening of naira inventories to travel agencies in the countries.
“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. The rate is not static, i.e. if the rate at which the CBN sells USD goes up, the exchange rate applied to airfares will follow and vice versa,” IATA said.
The Guardian reported that following a negotiation to end the logjam, the authorities recently conceded a shift from the official CBN window to the much volatile I&E window for the repatriation of foreign airlines funds in Nigeria.