Libya’s central bank has devalued the Dinar by 14.7%, setting the official exchange rate at about 6.3 to the United States Dollar. This marks the currency’s second adjustment in less than a year.
In a statement, the bank said the move reflects the impact of continued political divisions, weaker oil revenues linked to lower global prices, and persistent economic pressures. It also pointed to the absence of a unified national budget and rising public spending as factors placing strain on financial stability.
Libya’s prolonged political fragmentation has complicated economic management in a country that relies heavily on oil exports for state revenue.
Commenting on the development, Dr Tafadzwa Ruzive, a Post-Doctoral Researcher at the University of the Free State’s Office of International Affairs, said the devaluation highlights deeper structural challenges.
“This adjustment is less about correcting the exchange rate and more a symptom of unresolved political and fiscal problems,” Ruzive said. “Without a unified budget and coordinated economic policy, currency measures on their own will struggle to stabilise the economy.”
He added that while the devaluation may ease short-term pressure on public finances, it is likely to raise the cost of imports and worsen inflation for ordinary Libyans if broader reforms are not implemented.
–ChannelAfrica–
