Libya's Dinar Takes a Hit in Political and Economic Struggle

Libya's central bank devalued the dinar by 14.7% against the U.S. dollar, citing political instability and declining oil revenues. This marks the second devaluation in a year, following a previous adjustment in April 2025. The nation faces economic challenges with fluctuating oil production and unresolved political divisions.

In a significant economic move, Libya's central bank has announced a 14.7% devaluation of the dinar. The new exchange rate is set at 6.3759 to the U.S. dollar, marking the currency's second devaluation within a year due to ongoing political and economic turmoil.

The Central Bank of Libya attributed this decision to the country's persistent political divisions, a decrease in oil revenues amid lower global prices, and various economic challenges, including escalating public spending and an absent unified state budget.

Since an uprising in 2011 and subsequent split in 2014, Libya has been grappling to stabilize its economy. The nation continues to face hurdles in maintaining steady revenue streams as oil production and prices fluctuate, with oil remaining a pivotal component of Libya's economic structure.

(With inputs from agencies.)