The International Air Transport Association (IATA), has disclosed that it’s not responsible for exchange rate applied to international flight tickets in Nigeria.
This is coming against the backdrop of reports attributing the current hike in exchange rates to the international body.
It would be recalled that the exchange rates for international air tickets rose significantly by 37.5 percent above the official rate (N461.1/$) to N634.0/$.
The development has forced airlines operating in the country to increase their airfares significantly.
However, IATA, representing 300 airlines, with 83 percent of global air traffic, in a statement made available to vanguard, lamented of be attributed to the development.
The statement reads: “The exchange rate applied to international flight tickets sold in Nigeria are not determined by IATA and it is incorrect to describe them as the “IATA exchange rate”.
“Air fares for international flights from Nigeria are denominated in US Dollars and converted into Naira, the local currency, for sale in the Nigerian market.
“These conversions use the official prevailing exchange rate provided by the country 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. 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.”