In the context of the Central Bank of Libya’s decision to lower the exchange rate of the dinar by 14.7% against the Special Drawing Rights unit, an economic expert warned of the decision’s repercussions on citizens’ living conditions.
In a comment, the expert stated, “Every year, the exchange rate moves forward, and the people move backward. The Central Bank’s promises of recovery have gone with the wind,” referring to the failure of monetary policies to achieve tangible results on the ground.
This statement comes after the US dollar recorded a slight increase in the parallel market, compared to a noticeable rise in the official market, amid fears that the decision will lead to further pressure on prices and citizens’ purchasing power, given the ongoing economic challenges and political division the country is experiencing.
Central Bank of Libya
The Central Bank of Libya is the primary monetary authority of Libya, established in 1956 following the country’s independence. It has played a critical role in managing the nation’s economy and currency, though its operations have been significantly impacted and divided between rival administrations during periods of conflict since 2011.
Libya
Libya is a North African country with a rich history rooted in ancient civilizations like the Phoenicians and Romans, followed by centuries of Arab and Ottoman influence. In the modern era, it was an Italian colony before gaining independence in 1951, later becoming known for Muammar Gaddafi’s lengthy rule from 1969 until the 2011 revolution. Its cultural sites include the well-preserved Roman ruins of Leptis Magna, a UNESCO World Heritage site.
US dollar
The US dollar is the official currency of the United States, established by the Coinage Act of 1792. It evolved from a system based on Spanish milled dollars and has become the world’s primary reserve currency since the Bretton Woods Agreement in 1944.
