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Still a mystery as to the origin of the word. It almost certainly isn't Gullah of West African. It almost certainly isn't from "foe" in Pig Latin as that form of "Pig Latin" didn't really start until 1920 and "ofay" was around from at least the 1890s. It usually wasn't used in a derogatory way about whites, but rather just as a matter of fact expression. Quite often used in early Black newspapers in columns written about theatrical performers and that the "ofay" owned the theater in which the Black performers, er uh, performed.
It is really the most beautiful city of its kind in the South. It has all modern conveniences, electrical effects, etc, is situated near the harbor and the audiences are all ofays, principally foreigners.
ofay by samclem June 14, 2010
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A word of unspecified West African origin that refers to "white" people. It's commonly used in the American South but has fallen out of favor as "White Devil" has assumed prominence.
This ofay at my job is jealous of my ability to get the job done faster and better than him. But he can't help his ofay ways.
ofay by IncogNegro (FC) February 20, 2003
Term for White person used by Blacks, especially in the Low Country or Chicago in the early and mid 20th cent. It began as derivation of "fade" which would sometimes be varied as "fay" or "ofay". Eventually the variation replaced the original.
That ofay thinks he knows jazz.
Ofay by oddfisher March 23, 2019
rather outdated Black English for "foe," origin unknown. See page 26 of the 1971 Bantam edition of Ann Fairbairn's novel Five Smooth Stones, where one of the African American characters, Geneva, defines it as meaning "foe" but gives no hint of etymology. I'd be tempted to go with the African origin.
Don't we know she a ofay _____? derogatory having to do with sexual conduct.

He just an ofay, that what he be.
ofay by Glenda Schrock January 11, 2009
Pig Latin for "foe" might be right, but why not "au fait":

Definition: "being up to date in knowledge"

... an ironic reference to Ofays' access to education, etc
Ofay Watcher (Eldridge Cleaver, Soul On Ice (1968)).
Ofay by NinthLifeCat August 28, 2009

ofay but okay 

that Siggy, he's ofay but okay.
ofay but okay by Seegrams December 21, 2008

Whitey Cracker Honky Gringo Ofay 

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Whitey Meaning
Ofay Meaning
Cracka Meaning
Honky Meaning
Gringo Meaning

All of them are insults to white people
No one asked this Whitey Cracker Honky Gringo Ofay.