The Central Bank of Libya announced an adjustment to the exchange rate of the Libyan dinar against the Special Drawing Rights (SDRs) unit, implementing a reduction of 14.7%.
The Central Bank added that each Libyan dinar will become equivalent to 0.1150 Special Drawing Rights units instead of 0.1348, meaning the price of the US dollar in the local market will range around 6.3 – 6.4 dinars per dollar.
The bank also approved a maximum selling margin for exchange companies of 4% for direct cash transactions, while the margin is reduced to 2.5% for sales via checks and bank transfers.
The bank clarified that the decision comes amid the continued absence of a unified public budget, unsustainable growth in public spending, a dual exchange rate outside disciplined financial frameworks, in addition to declining oil revenues.
The Central Bank also indicated that the decision implements the recommendations of the Monetary Policy Committee from its first meeting of 2026, aiming to preserve financial and monetary stability and ensure the sustainability of public resources.
Central Bank of Libya
The Central Bank of Libya is the country’s primary monetary authority, established in 1956 to issue currency and manage monetary policy. It has played a critical and often divisive role in Libya’s recent history, notably functioning as a unified financial institution throughout the post-2011 civil conflicts despite the country’s political fragmentation.
Libyan dinar
The Libyan dinar is the official currency of Libya, introduced in 1971 to replace the Libyan pound. Its issuance and value have been heavily influenced by the country’s political history, including the Gaddafi era and the instability following the 2011 civil war.
Special Drawing Rights
Special Drawing Rights (SDR) is an international reserve asset created by the International Monetary Fund (IMF) in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of five major currencies: the U.S. dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling.
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.
