Disparity in exchange rates difficult to align for air travellers - IATA

Travellers may have to continue paying higher airfares due to the significant difference in the Bank of Ghana, International Air Transport Association (IATA) and Forex Bureau exchange rates.

For Instance, on Thursday, June 29, 2022 the weighted average of BoG’s Daily Interbank FX Rates was GH¢7.22 to US$1.

However, the IATA rate as set by StanChart and the rate at which Ghanaian travellers purchase airline tickets, was GH¢8.20 to US$1.

This means for a US$1,000 ticket, the consumer is paying an extra GH¢980 due to the significant difference in the FX rate.

Forex Bureau rates also differ significantly from the BoG rate. As at June 29, the US$1 was trading at GH¢8.0.

“We understand that the volatility of the currency requires that they hedge.

“All we are asking is that the gap between the bank rate, forex bureau rate and the IATA forex rate should be reasonable,” a senior travel consultant with a reputable travel and tour company in Accra, who desires to remain anonymous, told AviationGhana.

In an interview with AviationGhana on the sidelines of the just-ended #IATAAGM Willie Walsh, IATA’s Director General, said it is difficult to align the rates.

“It’s impossible to solve because these difference have existed forever and they are not going to be easily aligned. The rates are calculated on a different basis. I don’t honestly see a simple solution to that.

“It would be great if the rates could be closely aligned, because in some cases the difference is significant and can have a major impact but I don’t see a simple solution to it.”

International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 290 airlines or 83% of total air traffic.

The association supports many areas of aviation activity and help formulate industry policy on critical aviation issues.​