Libya is facing a new wave of economic hardship after the central bank devalued the national currency, the dinar, by 13.3 percent its second such move in five years. The exchange rate jumped from 4.48 to 5.56 dinars per US dollar, while on the black market it soared to 7.80, triggering a steep rise in the cost of imports and everyday essentials.
This sharp devaluation has hit ordinary Libyans hard, compounding the challenges already brought on by years of political division and conflict. Small business owners and importers, who often depend on the parallel market for foreign currency, are now struggling to stay afloat as their costs surge. “It has become hard to keep up with our needs for food, medicine, transportation, education and bills,” said Karim Achraf, a Tripoli-based engineer and father of three.
Despite holding Africa’s largest hydrocarbon reserves, Libya remains reliant on imports due to a weak industrial and agricultural base. Its economy is further strained by reduced oil output and unsustainable public expenditures driven by the country’s two rival governments the UN-recognized administration in Tripoli and the eastern government backed by General Khalifa Haftar.
The United Nations Support Mission in Libya (UNSMIL) expressed alarm over the economic instability, calling for “urgent measures” to stabilize the economy and protect citizens’ livelihoods.
Experts argue the central bank is unfairly bearing the blame for broader governance failures. Economist Mahmoud El-Tijani defended the bank, saying it was “forced to make the decision to protect what remained of the dinar’s strength” amid falling oil revenues. He warned the move was a last-ditch effort to prevent bankruptcy.
Jalel Harchaoui of the Royal United Services Institute noted that the devaluation reflects the consequences of unchecked political spending. “Blaming the central bank is pure populism,” he said, describing it as a technocratic institution caught in the crossfire of political rivalries.
With citizens protesting in Tripoli and inflation eroding public trust, the crisis underscores the urgent need for political reconciliation and fiscal reform to prevent further economic deterioration.
