Libya: Ongoing crisis causes the dinar to fall against the dollar

Libya’s black-market exchange rate in Tripoli hit 8.20 dinars to the dollar—its worst rate since the fall of Muammar al-Gaddafi in 2011. The authorities responded by closing al-Mouchir, the capital’s main foreign exchange market, to curb speculation. Meanwhile, the official exchange rate remains at 4.7 dinars to the dollar, yet many fear the rate on the black market could soon reach 10 dinars. The surge in the dollar’s value on Libya’s unofficial market is largely driven by uncertainty surrounding the unresolved central bank crisis. This instability is fueling inflation, with food prices rising by 27.8% in a single month, according to the UN’s Food and Agriculture Organization (FAO).