An informed source at the Central Bank of Libya revealed that the Bank is working on a comprehensive plan to stabilize the foreign exchange market. This plan prioritizes market stability and aims to gradually reach a targeted interim exchange rate.
The source said the CBL aims to bring the black-market dollar exchange rate to below 9 dinars by the beginning of October.
The source noted that the CBL is prepared to absorb a portion of the deficit—within acceptable limits—to support market stability should oil revenues prove insufficient to cover requirements.
The source added that the plan involves injecting approximately US$ 3 billion starting in October, with continued interventions based on market developments until the targeted interim rate is achieved.
These measures will coincide with other steps, including the unification of the public sector Salary Scale and a package of fiscal and economic reforms to be announced by the CBL at a later date.
The source emphasized that the objective of these measures is to boost foreign currency availability, alleviate pressure on the exchange market, and support monetary and economic stability.
The dollar was trading, at one point today, on the parallel market, at LD 9.63 to the dollar - down from yesterday's LD 9.75.
Today's CBL statement of aiming to bring the exchange rate to below LD 9.00 indicates that the CBL Governor has given up on his previous vow to bring down the LD exchange rate to below the LD 7.00 mark. It is unclear if the LD 9.00 target is a short-term or the long-term target?