Nigeria: As Nigeria lets naira float, Kenya Airways braces itself for forex losses
Kenya Airways is facing more cash flow pressures from exchange losses expected from the effective devaluation of the Nigeria currency this week. Nigeria is one of 4 countries from whom Kenya Airways has been unable to retrieve US$25m paid to its agents because of a foreign exchange crunch. The others are Angola, Mozambique and South Sudan. The devaluation of the Naira, going by the black market exchange rates, could see the remittances shed up to half of their value in dollar terms. There are also no guarantees that hard currency will be readily available to back future sales. For Kenya Airways, which has its West African operations headquartered in the country, the expected inflationary pressure is also likely to constrain travel, dampening its revenue growth in the market. <br/>
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Nigeria: As Nigeria lets naira float, Kenya Airways braces itself for forex losses
Kenya Airways is facing more cash flow pressures from exchange losses expected from the effective devaluation of the Nigeria currency this week. Nigeria is one of 4 countries from whom Kenya Airways has been unable to retrieve US$25m paid to its agents because of a foreign exchange crunch. The others are Angola, Mozambique and South Sudan. The devaluation of the Naira, going by the black market exchange rates, could see the remittances shed up to half of their value in dollar terms. There are also no guarantees that hard currency will be readily available to back future sales. For Kenya Airways, which has its West African operations headquartered in the country, the expected inflationary pressure is also likely to constrain travel, dampening its revenue growth in the market. <br/>
