The head of Libyan Consumer Associations Union, Ahmed Al-Kurdi, stated that prices for various food and medicinal items have increased by 20%. He added that prices will continue to rise if the dollar exchange rate does not decrease.
Al-Kurdi indicated that prices are continuously escalating due to the monopoly of some traders, as well as pricing based on the parallel market exchange rate, amidst the absence of regulatory authorities to control prices.
He explained that there is a missing link between the suppliers, wholesalers, and speculators who manipulate prices for profit.
Meanwhile, Minister of Economy and Trade in the Government of National Unity (GNU), Mohamed al-Hwaij, affirmed that “prices in Libya, according to international indicators, are cheaper than many other countries and are still under control.” But he reiterated that about 40% of Libyans are falling below the poverty line.
In a report, the World Food Programme confirmed a 3% increase in the prices of basic commodities in February compared to January this year (2024. It noted that the price of the food basket per individual has reached 866 dinars.
al-Hwaij voiced his deep concern regarding a recent decision by Ageela Saleh, the Speaker of the Libyan House of Representatives in the east, to slash the value of the Libyan dinar.
This decision, which entails imposing a hefty tax on foreign currency purchases, could potentially trigger a staggering 30% surge in prices across the nation.
In an interview with CNN Business, al-Hwaij sharply criticised Saleh’s move, branding it as ill-advised and warning of a looming economic catastrophe. He stressed that both the Ministry of Economy and the Government of National Unity (GNU) vehemently oppose this decision, highlighting its untimely implementation and lack of proper consultation with key ministries.
Saleh’s decision, aimed at devaluing the dinar, involves imposing a hefty 27% tax on foreign currency transactions. This tax, slated to remain in effect until the year’s end, effectively reduces the exchange rate from 4.80 Libyan dinars per dollar to a range between 5.95 and 6.15 dinars.
