Libya faces economic pressure amid exchange rate volatility

Libya is facing significant economic pressure due to a widening gap between the official exchange rate and the parallel market rate for the US dollar. Experts warn that the Libyan dinar remains under intense pressure, impacting consumer prices and national stability.

Economic expert Abu Saif Aghnia noted that despite the Central Bank of Libya injecting approximately $3 billion into the local market, foreign currency prices have remained high. He attributed this to the limited effectiveness of liquidity injections alone and the influence of speculation networks that exploit a lack of transparency and uncertainty regarding foreign reserves.

Researcher Rim Al-Berki warned of a potential upcoming adjustment to the exchange rate, possibly before the month of Ramadan, driven by spending deficits and pressure on monetary reserves. She cautioned citizens to hold onto foreign currency to protect their savings against the declining value of the dinar, describing the situation as a result of speculative policies rather than institutional failure.