Libya’s central bank drops dollar purchase fees to 163%

July 31, 2019

The GNA, together with the Central Bank set the fee at 183% in September 2018, effectively devaluing the Libyan dinar to bridge the conversion gap between the official and far bigger black market.

The gap has undermined Libya’s oil-dependent economy, contributing to a liquidity crisis and fomenting corruption as armed groups with access to dollars at the official rate make huge profits through import scams, Reuters reported.

Libya earned 11.1 billion Libyan dinars ($7.9 billion) from the transactions’ fee in the first six months of this year, according to central bank figures.