IATA mulls digital currencies for financial systems settlement

-

 IATA  mulls digital currencies for financial systems settlement 




 The International Air Transport Association (IATA) , said it has concluded plans to offer digital currencies in the financial settlement systems it operates for the aviation industry.
IATA, is the trade association of   330 airlines in over 120 countries. 
Disclosing this, IATA's Senior Vice President for Financial Settlement and Distribution Services,   Muhammad Albakri said the new measure has become imperative because digitization impacts many aspects of lives , warranting many sectors, such as aviation to adopt it in supporting its services.
According to Albakri the  first digital currency to be offered is the digital Renminbi, which will be available in the China Billing and Settlement Plan (BSP) by the end of 2024.  
He said  IATA is also examining the potential to offer other digital currencies in its settlement systems based on the needs and requirements of the industry.
In July 2024, IATA added the Renminbi Offshore (CNH) currency to its IATA Currency Clearance Service (ICCS), bringing the total number of currencies handled by the service to 74.
The ICCS is IATA’s global cash management system. It enables airlines’ treasurers to repatriate their sales funds worldwide to their preferred nominated currencies.  This results in an accelerated and improved working capital management and reduced foreign exchange risks.
Albakri said : “Digitalization impacts many aspects of our daily lives, including the currency we use. With the increasing use of digital currencies, it is imperative that IATA’s industry financial settlement systems adapt to support the needs of those using our services,”
  “China is one of the most advanced countries in the world in the adoption of digital currency. Recognizing the trend, IATA’s China Airline Committee requested for the digital Renminbi to be included in the BSP. This is an important development and IATA will accommodate the digital Renminbi by year-end.
“The experience gained in introducing the digital Renminbi will help IATA in onboarding other digital currencies in the future."
“At the heart of the integration of the digital Renminbi and all other settlement system work is a need to serve the customer and adapt to their behavioral changes in payment methods. 
"Payment should be seamless. A customer shouldn’t be frustrated by not having their payment method of choice available. Nor should airlines lose out on deriving the proper value from their ticket sales,” said Albakri.

Comments

Post a Comment

Popular posts from this blog

NCAA blasts Aviation Elders on spurious claims bordering on Najomo's confirmation

-
Image
    NCAA blasts Aviation Elders on spurious claims bordering on  Najomo's confirmation  The Nigeria Civil Aviation Authority (NCAA) has  berated the shadow chasing efforts of a so - called industry group :  Aviation Elders (AE) , which has embarked on a sinister move to thwart efforts by the Federal Government to confirm the appointment of Captain Chris Najomo as the substantive  Director General of the apex aviation regulatory body. In a move aimed at mudslinging, Aviation Elders accused  Najomo of handling safety matters with levity. Aviation Elders  accused Najomo of trivializing the sector by allegedly announcing his confirmation by himself in a video when the National Assembly has not done so. Though the NCAA would have ignored the group with its sinister agenda, but is constrained to set the records straight. NCAA's Director of Public Affairs and Consumer Protection, Mr Michael Achimugu has  countered all the allegations saying the...
Read more

FAAN Managing Director highlights benefits of AMPAP programme

-
Image
  FAAN Managing Director highlights benefits of AMPAP programme  The Managing Dirgector of the Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Kuku has highlighted the benefits of the Professional Airport Managers Programme (AMPAP), organized by the Airports Council International (ACI) saying the exercise has been worth its while. At the AMPAP Alumni Meet and Greet in Lagos, Mrs Kuku  expressed  profound appreciation for the enlightening experience gained through the program. She emphasized that the value extended beyond the curriculum, highlighting the crucial opportunity to build camaraderie, exchange perspectives, and understand diverse approaches to problem-solving among her colleagues.  Mrs. Kuku noted that the program’s effectiveness stemmed from its practical approach, utilizing real-life case studies to enhance understanding and application in current professional roles. She particularly praised the interactive structure, which encouraged acti...
Read more

Emirates , Air Peace sign interline agreement

-
Image
Emirates , Air Peace sign interline agreement ...To expand travel choices to 13 Nigerian cities  Emirates, the world’s largest international airline, has signed an interline agreement with West Africa’s largest airline, Air Peace, enhancing connectivity for passengers travelling to and from Nigeria. The partnership expands Emirates’ footprint to 13 new cities in Nigeria with frictionless single-ticket travel and simplified baggage throughput. Travellers booked on flights from Dubai to Lagos can access more of Nigeria, with onward connections to Asaba, Akure, Benin City, Calabar, Enugu, Ilorin, Kaduna and Owerri. The interline agreement will also benefit corporate travellers, connecting to additional cities in one of Africa’s major economic hubs, including its capital city Abuja, Kano, Uyo, Port Harcourt and Warri, further supporting the strong bilateral trade relationship between Nigeria and the UAE. Adnan Kazim, Emirates’ Deputy President and Chief Commercial Officer  said, “...
Read more