By Libya Herald reporters.
Tripoli/Benghazi, 7 March 2016:
Currency dealers in Tripoli were again being blamed as the dinar yesterday dropped to its lowest . . .[restrict]rate ever against the dollar. It was trading at one point at LD 3.98 to the dollar. It then dropped back to LD 3.70, but the few dealers who are operating today are currently quoting LD 3.90. In Benghazi, the rate is lower, at LD 3.75.
Many Tripoli dealers are closed today following yesterday’s reported arrest of a number of their colleagues in the city’s Dahra district, allegedly by the Katiba Bab Al-Tajoura. It is linked to the Rada (“deterrence”) forces, led by Abdul Raouf Kara. However, Rada has issued a denial on its Facebook page that it has been in any such action.
Dealers, though, say they believe Rada forces were involved, adding they fear more raids.
Against the Euro, the rate was LD 4.18 this morning but by the afternoon had risen to LD 4.20. Outside the country, a Libyan dinar was buying just 0.57 Tunisian dinars in the Tunisian border town of Ben Guerdane. In Egypt, dealers were giving £E 2.45.
The official dollar/dinar rate is $1 = LD 1.39.
Dealers say they fear that dinar will drop further in the coming days mainly because of the political divisions and instability, together with the Central Bank of Libya’s decision to increase dinars in circulation by printing more money. Some merchants are predicting that the dinar will go to five to the dollar. [/restrict]
