Libyans Weigh Biggest Devaluation Since 2002, Official Says – Bloomberg

Libyan authorities are weighing the largest currency devaluation in more than a decade in an attempt to repair finances battered by conflict and the plunge in crude prices.Ali Jihani, a senior central bank official told Bloomberg News that policy makers may devalue the dinar by more than 50 percent to between 2.2 and 2.3 a dollar and are also looking into raising funds through domestic bond sales. He said the timing of the move, which would narrow the gap with the black market exchange rate of about 4 dinars per dollar, hasn’t been decided.In the five years of chaos that followed the ouster of Muammar Qaddafi, analysts have viewed the central bank as an institution trying to preserve a semblance of unity in a country where rival parliaments, governments and militias have vied for oil and power. While the bank also has two administrations — one in the east and another in the west, much like the other state agencies — the two boards have been largely coordinating actions to prevent an economic meltdown in the holder of Africa’s largest oil reserves.

Source: Libyans Weigh Biggest Devaluation Since 2002, Official Says – Bloomberg

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