Economist Mohamed Al-Shaibani stated that Libya faces imported inflation. Exchange market distortion raises prices. It also deepens recession. Al-Shaibani said Libya’s heavy reliance on imports causes this imported inflation. The exchange market is also distorted. He noted the difference between official and parallel exchange rates is nearly 50 percent. This forces importers to price goods at a higher effective rate.
Al-Shaibani clarified this in special statements to “Al-Araby Al-Jadeed” website. He explained that the widening gap between official and parallel market rates directly impacts goods pricing. Importers rely on higher estimates to cover the cost of foreign currency.
Al-Shaibani also indicated that the cash liquidity crisis contributes to deepening the recession. It limits consumers’ ability to benefit from discounts. It also creates a distortion in pricing mechanisms. This affects both cash and electronic payments.
Al-Shaibani warned that the continuation of these factors could deepen stagflation in the market. This is due to the overlap of the price crisis. It is combined with weak purchasing power and the liquidity crisis.