Former Central Bank of Libya board member, Mrajaa Gaith, told our source that modifying the exchange rate or increasing the tax will not impact the demand for foreign currency. He explained that those seeking U.S. dollars are not commodity traders but rather a different group of speculators, drug dealers, and both legal and illegal foreign workers—people who are more concerned with access to dollars than the actual exchange rate.
Gaith added: “Strict measures must be taken regarding currency sales. Any increase in the exchange rate means more funds for the government to spend, and increased government spending is one of the key drivers of rising foreign currency prices.”
He further stated that economic stability can only be achieved under a unified government capable of enforcing its authority.
