The US dollar continued its upward trajectory in Libya’s parallel market, reaching new highs and deepening concerns over currency stability amid ongoing economic pressures.
According to the latest figures circulating among currency traders on Wednesday, the dollar was trading at approximately 8.54 Libyan dinars, marking its highest level in recent days. The continued rise reflects growing demand for hard currency and persistent imbalance between supply and demand in the informal exchange market.
Just one day earlier, the dollar had been trading at around 8.34 dinars, while earlier on the same day it stood near 8.31 dinars. On Monday, the exchange rate hovered at roughly 8.22 dinars, indicating that the US currency has gained around 0.32 dinars in just three days. Traders describe the pace of the increase as rapid, noting heightened volatility and uncertainty among market participants.
The rise in the parallel market contrasts with the relatively stable official exchange rate set by the Central Bank of Libya. On Wednesday, the official rate recorded a marginal increase, with the dollar priced at 5.42 dinars, compared to 5.41 dinars the previous day. Despite the slight movement, the gap between the official and parallel rates remains wide, reinforcing the reliance of many businesses and individuals on the black market to meet foreign currency needs.
Economists warn that the sustained rise of the dollar in the parallel market could have direct consequences for domestic prices, particularly for imported goods, fuel-related services, and basic commodities. Libya’s heavy dependence on imports makes exchange rate fluctuations a key driver of inflation and purchasing power erosion.
Market observers attribute the dollar’s surge to several factors, including uncertainty over fiscal policy, increased demand for foreign currency during the year-end period, and limited access to dollars through official banking channels. Delays in foreign currency allocations and restrictions on transfers are pushing demand toward informal markets.
