There are strong indications that travelers would going forward pay more for tickets as the Airlines’ rate of exchange (ROE) surged from 582.00 to N610.00 per dollar.
OsunDaily News understands that this is the second rise in barely a month as it was increased from N462 to N551 per dollar in March.
Reports have it that the sharp increase is part of the fall-out of the mounting foreign airlines’ trapped funds which recently crossed over $700 million.
It was gathered from Daily Trust that the Airlines’ rate of exchange (ROE) changed from 582.00 to N610.00 with effect from Wednesday.
Confirming the development was the President of National Association of Nigerian Travel Agencies (NANTA), Mrs. Susan Akporiaye, who said, “The implication is that Air fares would go up again. A fare that was N1.5 million yesterday is now N1.7 million and report reaching us from IATA indicated that the Airlines are trying to match the rate that CBN is selling to them. CBN is not selling to them at official rate.”
This online news platform learnt that when the rate increased in March from N460 to N551/$, the prices of fares also surged, and with this new increment to N610, it means that tickets would be issued at the rate of N610 to a dollar.
It was however gathered that the new exchange rate used for aviation related businesses especially flight booking aligns with the investors’ and exporters’ (I&E) foreign exchange windows that allow for FX trades to be made at exchange rates determined based on prevailing market circumstances.
Reacting to the development, a travel agent told Daily Trust that “I got a mail from one of the airlines that as from today, flight reservations should be made using the new rate,” the trade partner said pleading not to be named.
“The implication is that many classes of tickets would be seriously affected as airlines which recently reinstated some lower inventories may remove them again.”
Also an Aviation consultant identified as Babatunde Adeniji also said “It changes up and down but doesn’t impact the block funds situation. What it was meant to achieve is that the rate at which you sold should be a safe rate for you. It is like a floating exchange rate. But the same CBN that is fixing exchange rate, when it is time to make remittances, you might not get the same rate.
“The big problem with blocked funds is that when I am ready to get my money, the only rate available to me is the black market rate.”
