Gold prices in Libya continue to follow a trajectory that often differs from international market trends, with economists saying domestic economic conditions—particularly the exchange rate of the US dollar in the parallel market—have become the primary factor determining local prices.
Although global gold prices remain the benchmark for pricing the precious metal, experts say local market dynamics frequently outweigh international developments. As a result, changes in global gold prices are not always reflected in Libya at the same pace or to the same extent.
Economic expert Khaled Al-Kadiki said the price of gold in Libya is determined by a combination of international and domestic factors rather than by global markets alone. He explained that while movements in the international price of gold provide the starting point for local pricing, the exchange rate of the US dollar in Libya’s parallel market plays the most significant role in determining the final price paid by consumers.
Al-Kadiki added that the Libyan gold market also faces structural challenges that increase prices, including complex import procedures, reliance on unofficial supply channels during periods of limited official imports, high transportation and insurance costs, taxes, operating expenses, and limited market supply. Together, these factors create a noticeable gap between local and international gold prices.
He noted that volatility in the parallel market exchange rate, combined with limited supplies and relatively high commercial profit margins, has widened the difference between Libyan and global prices. According to Al-Kadiki, gold prices are likely to continue rising if international prices remain elevated while pressure on the dollar exchange rate persists. He added that improving exchange rate stability and simplifying official import procedures would help narrow the price gap and improve market stability.
Former Central Bank of Libya board member Emraj Ghith offered a similar assessment, saying the local exchange rate has a greater influence on gold prices than international market movements. Because gold is sold in Libyan dinars, any increase in the value of the US dollar in the parallel market is quickly reflected in local prices, while a decline in the dollar generally leads to lower gold prices.
Ghith explained that global economic conditions, including US interest rates, inflation expectations, and investor demand for safe-haven assets during periods of geopolitical uncertainty primarily influence international gold prices. However, he stressed that these global factors are filtered through Libya’s domestic economic environment before reaching consumers.
Both experts agreed that monitoring international gold prices alone is no longer sufficient to understand price movements in Libya. Instead, they said the interaction between global market trends and local variables—especially the parallel exchange rate, import conditions, supply levels, and broader economic challenges—ultimately determines the price of gold in the Libyan market.
