Tripoli on 19 June unified its dinar exchange rate as part of efforts to reform its command economy. The move signals the end of the dual-rate system, under which individuals requiring foreign currency used the so-called commercial rate while an official rate was set for transactions involving state firms.
The new single rate is intended to encourage and ease foreign investment in Libya, and came a week after Shukri Ghanem, former economy & trade minister, was appointed Prime Minister. Ghamen told MEED that the liberalisation of the economy would be his first priority (MEED 20:6:03, Seven Days).
The unification has had little immediate impact on the dinar/dollar exchange rate. The bid/ask quotes on 25 June were $1=LD 1.372/1.365, compared with $1=LD 1.361/1.354 on 18 June.
The first move towards the introduction of a market-driven exchange rate was taken at the beginning of last year, when the Central Bank of Libya devalued the dinar by 51 per cent (MEED 11:1:02).
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