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Following the increase in the exchange rate in the country, the prices of air tickets from Nigerian routes to destinations outside the country have also increased significantly.
The increase in airfares arose as a result of currency floating recently embarked upon by the country’s apex bank, the Central Bank of Nigeria (CBN).
Recall that CBN last week introduced new forex guidelines aimed at unifying the nation’s exchange rate, a move aimed at ending multiple exchange rates in the country.
About 24 hours after the decision, the naira traded at 664.04/dollar at the I&E window. Two days later, the local currency closed at 702.19/dollar at the close of business on Thursday.
In previous months, the exchange rate adopted by international airlines for ticket pricing had risen consecutively from about N445/dollar to about N660/dollar about two weeks ago.
However, the latest move by the CBN has made IATA to adopt the exchange rate on the I&E Window.
Prior to the latest development, IATA used to adopt NAFEX rate published on the FMDQ Exchange.
The development came as summer travel season began a week ago with ticket prices rising by 25 per cent.