Latest economic turbulence to hit airlines: Currency controls
Currency controls in a couple of emerging markets are grounding the airline industry. IATA said Tuesday that airlines around the world could not repatriate billions of dollars in revenue from Venezuela and Nigeria due to various controls on capital accounts. As of March, international airlines’ funds that were trapped in Nigeria stood at US$575m, while Venezuela blocked a total of $3.6b. While the IMF has said that currency controls may be beneficial to countries trying to prevent foreign capital flight and stabilise their economies, the airlines’ experience shows that companies operating in these countries can suffer. Airlines join other businesses like oil producers and beverage makers in running up against capital controls in Venezuela and Nigeria, which have made it difficult to acquire raw materials or repatriate sales. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-25/general/latest-economic-turbulence-to-hit-airlines-currency-controls
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Latest economic turbulence to hit airlines: Currency controls
Currency controls in a couple of emerging markets are grounding the airline industry. IATA said Tuesday that airlines around the world could not repatriate billions of dollars in revenue from Venezuela and Nigeria due to various controls on capital accounts. As of March, international airlines’ funds that were trapped in Nigeria stood at US$575m, while Venezuela blocked a total of $3.6b. While the IMF has said that currency controls may be beneficial to countries trying to prevent foreign capital flight and stabilise their economies, the airlines’ experience shows that companies operating in these countries can suffer. Airlines join other businesses like oil producers and beverage makers in running up against capital controls in Venezuela and Nigeria, which have made it difficult to acquire raw materials or repatriate sales. <br/>
