The Libyan dinar recovered some of its value in the black/parallel market against the major hard currencies Wednesday after steady losses over the last week. One popular exchange site quoted a low of LD 6.27 Tuesday, before recovering to LD 5.61 to the dollar Wednesday.
The sharp fall in the dinar exchange rate has caused much consternation on traditional and social media as programmes lined up analysts to explain the causes of the dinar loss. Supply not meeting demand, falling supply, rising demand, a Central Bank of Libya (CBL) clampdown on money launderers, a CBL FX deficit, and poor management by the CBL were the main reasons given.
The Central Bank of Libya released its October statistics bulletin this week which showed demand for foreign exchange rising. The statistics, covering the year up to 31 October, also showed a foreign currency deficit of US$ 10.9 billion.
During his meeting with directors of commercial banks, the Chairman of the Administrative Control Authority (ACA), Abdalla Gadirbuh said there is no justification for the sharp rise of the dollar in the parallel market.
He said the ACA will not allow the humiliation and exploitation of the citizen, by taking deterrent legal measures in accordance with its establishment law (No. (20) of 2013 AD), its amendments, and its executive regulations.
He said the lack of a general strategy for banks contributed to the sudden rise in the price of the dollar. It is necessary to develop a clear plan and a radical solution to end the recurring scene of citizens waiting for hours in front of banks, he added.