Libya Devalues Dinar by 14.7% for Second Time in Less Than Year

Libya’s central bank announced on Sunday a 14.7% devaluation of the Libyan dinar, setting the official exchange rate at 6.3759 dinars per US dollar, marking the second currency adjustment in less than a year amid ongoing political and economic turmoil.

In a statement, the Central Bank of Libya said the decision reflects the negative impact of prolonged political division, declining oil revenues due to lower global oil prices, and persistent economic challenges.

The bank cited the absence of a unified national budget and rising public spending as key pressures contributing to the move.

The latest adjustment follows a previous 13.3% devaluation in April 2025, when the exchange rate was set at 5.5677 dinars per dollar.

Libya has struggled with instability since the 2011 uprising, which led in 2014 to a deep political split between rival administrations in the east and west of the country, each operating separate governing and financial structures.

Despite holding Africa’s largest proven oil reserves, Libya continues to face difficulties in achieving economic stability and securing consistent revenue flows. The country remains heavily dependent on oil production and exports, which form the backbone of its economy but are frequently disrupted by political tensions, production outages, and volatility in global oil markets.

The repeated devaluations underscore the mounting pressure on Libya’s monetary system as policymakers attempt to manage shrinking revenues, rising expenditures, and prolonged institutional fragmentation.