Economic expert Saber Al-Wahesh told our source in an exclusive statement that the US dollar reaching 8 dinars occurred despite the Central Bank of Libya beginning to settle letters of credit and personal-use allowances. He attributed this rise to a combination of overlapping factors.
Al-Wahesh explained that the Central Bank’s recent measures—particularly its stricter auditing of letters of credit, including reviewing commodity prices and quantities—have reduced the inflow of foreign currency into the market, resulting in a clear decline in supply.
He added that the political division and the lack of clarity in fiscal policy have created uncertainty among market participants, pushing traders and citizens to hedge by holding on to dollars as a store of value, which has increased the demand for foreign currency.
Al-Wahesh pointed out that the expansion of government spending outside traditional financial channels has also contributed to rising pressure on the exchange rate, amid the absence of clear fiscal controls.
He also noted that the large volume of liquidity accumulated in bank accounts—seeking entry into the market—has raised demand for foreign currency, particularly through transactions conducted via bank checks.
Al-Wahesh concluded by stressing that these combined factors have created a wide gap between supply and demand, making the impact of Central Bank measures slow compared to the magnitude of real pressures, and thereby allowing the dollar to continue rising despite the start of settling letters of credit.
