Libya’s central bank has devalued the national currency by 13.3%, setting the new official exchange rate at 5.5677 dinars to the U.S. dollar, effective immediately. This marks the first official adjustment since the 2020 rate of 4.48.
The dinar currently trades at 7.20 to the dollar on the parallel market.
Last September, political turmoil over control of the central bank disrupted oil production and triggered a currency slide. The crisis was resolved later that month through a U.N.-brokered agreement between Libya’s eastern and western factions, allowing for the appointment of a new central bank governor.
In November, the eastern parliament reduced the tax on foreign currency purchases from 20% to 15%, affecting bank exchange transactions.
The central bank reported that government spending in 2024 reached 224 billion dinars ($46 billion), including 42 billion for crude-for-fuel swaps. Public debt stands at 270 billion dinars and could rise above 330 billion by end-2025 due to the absence of a unified national budget.
The U.N. has urged Libyan leaders to agree on a clear spending framework with oversight for 2025. Libya has been split between rival governments since 2014 following years of unrest after the 2011 NATO-backed uprising.
