As the dollar breaks the LD 10.50 mark, Aldabaiba attempts to deflect blame squarely onto Hafter for Libya’s runaway economic crisis

With the black-market foreign exchange rate plunging the Libyan dinar to over the LD 10.50 to the US dollar yesterday, Tripoli based Libyan Prime Minister Abdel Hamid Aldabaiba pre-empted a potentially explosive public political reaction by issuing a statement yesterday placing the blame squarely on the parallel Hafter regime.

He attempted to show that no matter what measures he takes in Western Libya they would not succeed if the Hafter controlled region did not stick to a (US-brokered) unified budget. He nevertheless welcomed any practical solutions by the Hafter regime ”that protect the dinar and alleviate the pressure on the people.’’

Attempting to simplify economic issues for easier understanding in his informally written statement directed at the average citizen, he said:

“I know people are angry, and that’s understandable. I don’t blame anyone. I’m the angriest of all of you. The average citizen isn’t concerned with the technical details; they’re asking a simple question: Why is the dollar rising, and why are prices rising?

According to reports from the Central Bank of Libya, in 2025, US$ 16 billion in letters of credit were opened, and about 100 billion dinars were withdrawn from the market.

However, in contrast, parallel spending of about 70 billion dinars was disbursed in one year. This spending created additional demand for the dollar of more than US$ 10 billion and brought the money supply back into the market.

The equation is clear:

– 70 billion dinars in uncontrolled parallel spending

– Leads to increased demand for the dollar

– Leads to a higher dollar exchange rate

– Leads to higher prices

In this situation, no monetary policy alone can succeed. I’ve said this more than once, and I’ve warned that monetary policy alone won’t be enough if spending isn’t controlled. That’s why I’m calling on the Governor of the Central Bank of Libya to stop any decision that increases the burden on citizens until we address the root cause of the problem.

The solution is adherence to the (US-brokered) Unified Development Agreement.

This agreement allows all regions of Libya—east, south, and west—to implement development projects, but only within the state’s financial capacity, and not through parallel spending exceeding what the economy can bear.

The solution is not to impose additional costs on citizens.

The solution lies in controlling spending.

I bear full responsibility before the Libyan people.

We are ready for any practical solutions that protect the dinar and alleviate the pressure on the people.’’

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