The interim government led by Osama Hamad, appointed by Libya’s House of Representatives, has accused traders in the parallel currency market of engaging in artificial speculation to “destabilize the country’s economic and social fabric.”
Despite these claims, the government affirms that foreign currency is readily available at official rates through state-regulated mechanisms.
In a statement released on its Facebook page, the government noted that most Libyan cities are currently experiencing an unprecedented boom due to the return of security and stability across various sectors after years of conflict and destruction.
This resurgence is attributed to the launch of major projects aimed at improving infrastructure elements, including roads, electricity, water, and telecommunications. Additionally, there are ongoing efforts to repair and prepare dilapidated residential complexes.
However, the government alleges that traders in the parallel market are engaging in fictitious speculation to inflate currency values, considering these acts “desperate attempts by those backing them to continue their systematic corruption, illegitimate benefits, and to halt the movement of reconstruction and development.”
Hamad’s government has reaffirmed the availability of foreign currency through all banks without exception, using official state instruments and at set prices. The government also mentioned the continuous issuance of documentary credits to their rightful claimants and the ongoing operations to recharge citizens’ foreign currency cards through all banks.
Data released today by the Central Bank of Libya indicates a foreign currency gap of $12.7 billion in the first ten months of the current year. Foreign currency revenues reached $17.9 billion from January to the end of October 2023, while the total usage and obligations of foreign currency amounted to $30.6 billion.
This report comes amidst efforts by the Libyan government to reassure citizens and the international community of its commitment to economic stability and progress, despite challenges presented by the unregulated currency market activities.
