{"id":256202,"date":"2026-02-10T20:11:25","date_gmt":"2026-02-10T18:11:25","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=256202"},"modified":"2026-02-10T20:11:25","modified_gmt":"2026-02-10T18:11:25","slug":"exclusive-al-barghouthi-regulating-exchange-companies-is-a-step-toward-narrowing-the-gap-between-the-official-and-parallel-exchange-rates","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/exclusive-al-barghouthi-regulating-exchange-companies-is-a-step-toward-narrowing-the-gap-between-the-official-and-parallel-exchange-rates\/","title":{"rendered":"Exclusive: Al-Barghouthi: Regulating exchange companies is a step toward narrowing the gap between the official and parallel exchange rates"},"content":{"rendered":"\n<p>Economic expert <strong>Mohamed Al-Barghouthi<\/strong> told<em> our source <\/em>exclusively that Libya is currently witnessing efforts to reorganize the foreign exchange sector as part of attempts to regulate the market using several tools. Most notably, these include establishing and regulating the operations of exchange companies within a clearer regulatory framework, which would help narrow the gap between the official exchange rate and the parallel market rate, and improve access to foreign currency through official channels.<\/p>\n\n\n\n<p>Al-Barghouthi explained that the operating mechanism of exchange companies is based on adherence to specific profit margins under the supervision of the Central Bank of Libya. A maximum selling margin of about <strong>4%<\/strong> has been set for cash transactions, with lower margins for transactions conducted via transfers, in an attempt to create an organized market that provides foreign currency legally and in a controlled manner, while reducing total reliance on the parallel market.<\/p>\n\n\n\n<p>Regarding the current exchange rate situation, Al-Barghouthi noted that the market is going through a sensitive phase following the recent adjustment of the official exchange rate to between <strong>6.3 and 6.4 dinars per US dollar<\/strong>. Meanwhile, the parallel market rate has remained significantly higher, having exceeded <strong>9 dinars per dollar in cash<\/strong> and <strong>10.5 dinars via checks and transfers<\/strong> in previous periods, reflecting the continued imbalance between supply and demand for foreign currency.<\/p>\n\n\n\n<p>He stated that these exchange rate adjustments stem from well-known structural factors, foremost among them the prolonged absence of a unified budget, rising public spending at levels exceeding the economy\u2019s financing capacity, and the impact of fluctuations in global oil prices on revenues\u2014all of which have placed direct pressure on the dinar\u2019s value and foreign reserve levels.<\/p>\n\n\n\n<p>Al-Barghouthi stressed that the success of the new exchange companies is not merely linked to opening the market or increasing the number of firms, but primarily depends on three key elements: strict oversight to prevent their use as channels for feeding the parallel market; the actual availability of foreign currency through the official system rather than on a theoretical level; and the adoption of disciplined fiscal policy to reduce pressure on the exchange rate in the medium term.<\/p>\n\n\n\n<p>He added that if these elements are implemented in a balanced manner, exchange companies can play a positive role in reducing distortions in the currency market and enhancing confidence in the financial system. However, in the absence of comprehensive financial and economic reforms, the impact of these companies will remain limited, regardless of how robust the regulatory framework may be.<\/p>\n\n\n\n<p>Al-Barghouthi concluded by emphasizing that Libya\u2019s exchange market continues to reflect the broader macroeconomic reality, and that any real and sustainable stability in the exchange rate remains contingent on public finance reform, unifying economic policies, and achieving long-term institutional stability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Economic expert Mohamed Al-Barghouthi told our source exclusively that Libya is currently witnessing efforts to reorganize the foreign exchange sector as part of attempts to regulate the market using several tools. Most notably, these include establishing and regulating the operations of exchange companies within a clearer regulatory framework, which would help narrow the gap between [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":256203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[613],"class_list":["post-256202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=256202"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256202\/revisions"}],"predecessor-version":[{"id":256204,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256202\/revisions\/256204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/256203"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=256202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=256202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=256202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}