The Central Bank of Libya (CBL) blames declining state oil revenues and “double spending” by the country’s rival east and west administrations for its decision to devalue the dinar by 13.3% to $1=LYD5.5677 as of 6 April. A 15% foreign exchange tax – reduced from 20% in November – remains in place for foreign currency purchases from commercial banks, bringing the effective exchange rate to $1=LYD6.4. The parallel market rate is lower still at $1=LYD7.2.
Libya accrued $18.6bn in state revenues from oil sales in 2024, down from $20.7bn for 2023, according to CBL stats. The spending of the two governments, meanwhile, totalled $46bn in 2024, leading to a foreign currency deficit of around $27bn. For 1Q 2025, the bank pegs oil revenue at $5.2bn, well below the governments’ combined $9.8bn of spending commitments. (CONTINUED - 236 WORDS)