By Libya Herald reporter.
Tripoli, 11 September 2015:
Tripoli’s feared Islamist Nawasi brigade, run by Abdul Raouf Kara from Mitiga Airport, has said . . .[restrict]that it will “strike with an iron fist” black market currency dealers. It accuses them of causing the fall in the value of the Libya dinar.
In a statement yesterday, it said that after consultation with “related authorities”, the leadership would “fight corruption in all types of banks” and all those who were “tempted to destroy the country’s economy”.
It claimed that its revolutionary credentials gave it the right to act.
Displaying little understanding of the market forces that drove down the dinar against all currencies, the Nasawi brigade and its colleagues in the various Rada (deterrence) forces (also controlled by Kara) in fact launched a campaign against the currency dealers a fortnight ago when the black market rate for the dollar went over three dinars. Several dealers were arrested and others quickly closed their shops in the two main money exchange areas in Dahra and the suq in the Old City.
There has been a slight rallying of the dinar against the dollar and the euro since then, but inevitably with a severe shortage of foreign currency available to the market, it has languished around LD 2.86 to the dollar ever since, compared to around LD 1.35 just over a year ago, and LD 1.37 on the official exchange rate.
Nawasi’s threats to bank employees and black-market dealers have raised concerns that the already damaged and fragile banking system could be completely paralysed if it takes action. [/restrict]