Economist Discusses Government and Rising Costs

The Libyan dinar is experiencing a significant decline due to ongoing political division and economic pressures. The exchange rate is linked to increased demand for foreign currency, especially from foreign workers and traders. The currency has depreciated substantially, with the dollar reaching more than eight dinars, despite the Central Bank selling it at around 6.36 dinars. Additionally, the Libyan economy suffers from weak reforms, poor management, currency smuggling, and a heavy reliance on imports, which account for up to 80%, while oil remains the main source of income. Experts emphasize the need for genuine reforms, ending the political division, and diversifying income sources to stabilize the currency and improve economic conditions.