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Travellers To Pay More For Tickets, As Airlines’ Exchange Rate Hits N610/$

Strong indications point to increased ticket prices in the future as the airline’s rate of exchange (ROE) jumped from N582.00 to N610.00 per dollar.

As it was raised from N462 to N551 per dollar in March, Newsmen is aware that this is the second increase in just over a month.

According to reports, the sudden rise is a result of international airlines’ increasing stuck funds, which recently exceeded $700 million.

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According to Daily Trust, the rate of exchange (ROE) for the airlines changed on Wednesday from N582.00 to N610.00.


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 outlet has learned that when the exchange rate climbed in March from N460 to N551/$, the cost of tickets also increased. With the most recent increase to N610, tickets will now be priced at N610 per $1.

However, it was discovered that the new currency rate applied to aviation-related firms, particularly airline booking, is in line with the foreign exchange windows for investors and exporters (I&E), which let FX exchanges to be conducted at exchange rates established in accordance with current market conditions.

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A travel agency commented on the situation by saying, “I got a mail from one of the airlines that as of today, flight reservations should be made using the new rate,” the trade partner added 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.


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“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.”



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