Atia Al-Fitouri is an economics professor at Benghazi University. He warned against calls for an import budget for the Libyan economy this year. Al-Fitouri believes proponents of these calls do not understand their negative consequences. He shared his views in a Facebook post.
Al-Fitouri explained the expected impact on the market and the dinar. He estimated that an import budget would boost parallel market activity. It would also increase the dollar’s price in the black market. This rise would negatively affect the dinar’s value. These results would also increase the inflation rate. They would expand the segment of the poor in the country.
Al-Fitouri concluded by recalling the 1982 experience. In 1982, the dollar’s black market price was ten times its official rate. He cited this as evidence of these policies’ dangers.