Libya Under Pressure to Devalue Currency

Libya’s UN-backed government is under mounting pressure to devalue its currency, joining other energy producers from Nigeria to Kazakhstan that have buckled in the face of tumbling revenue and domestic turmoil.

The dinar has been steadily weakening on the black market over the past year as the nation’s political rifts thwarted a recovery in oil output. It hit a record low of 7 to the dollar this week, according to currency dealers in Tripoli. The official rate is 1.4.

The currency crisis is undermining Prime Minister Fayez al-Serraj’s efforts to unite a country fractured by five years of conflict following the 2011 ouster of Muammar al-Qaddafi, leading instead to public discontent as prices surge. Libya is split between two rival administrations and militias vying for power in the holder of Africa’s largest oil reserves.

Bloomberg

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.