By Sami Zaptia.
London, 18 March 2021:
The Libyan dinar gained and fell under the LD 5 per dollar barrier yesterday for the first time for years on the black-market. In November 2020 it was over LD 6 per dollar.
The gain by the dinar on the black-market exchange comes after the official dinar devaluation announced on 16 December last year to 4.48 per dollar – which went into effect on 3 January this year.
The new unified and devalued exchange rate followed on from the historic ‘‘preliminary” 7 December reunified CBL board meeting. The CBL had been split – reflecting the country’s political split – since 2014.
Analysts see the gain by the dinar as a reflection of:
- The October 2020 permanent ceasefire between the pro and anti-Khalifa Hafter forces holding.
- The October resumption of oil production/exports.
- The arrival of the advance team of UN ceasefire monitors.
- The selection of the new Government of National Unity (GNU) in the UNSMIL-brokered Libyan Political Dialogue Forum (LPDF).
- The meeting of the reunified parliament (House of Representatives) in Sirte and Tobruk earlier this month to endorse and swear-in the new unified GNU.
Constitutionally based elections to take Libya out of its interim status that it has been stuck in since the 2011 February revolution are also planned for 24 December 2021.