How does the future of the Libyan dinar look like?

The Libyan local currency (the dinar) was hit after it lost more than 75% of its value over 7 years, according to the statistics of the Central Bank.

This comes after the "Central" reduced the value of the dinar for the first time since 2020 by 13.3% against foreign currencies, at a time when the country's economy suffers from structural imbalances and shrinking in purchasing power, real income value and the size of liquidity, as well as high levels of inflation, according to observers.

The bank justified the imposition of the tax and the reduction of the value of the local currency with the high bill of spending in the east and west, as the volume of the two governments spending last year exceeded the barrier of 224 billion dinars (approximately 46 billion dollars), which deepened the public debt gap to reach 270 billion dinars (55.7 billion dollars).

The Libyan Central expected that the financial gap would expand to exceed the level of 330 billion dinars (68 billion dollars) by the end of the current year, in the event that a unified budget is not approved.

However, the references of Ghaith, the former Undersecretary of the Ministry of Finance, the former member of t...
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