Tripoli sets single forex rate

27 June 2003
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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