The banking expert and member of the exchange rate adjustment committee, Misbah Al-Akari, explained the reasons for the Central Bank of Libya’s board of directors taking early this month a decision to amend the exchange rate and reduce it to 4.26 dinars per dollar.
Al-Akari said in a post on his official Facebook page today, Friday, that this decision came for several reasons, including the stability of oil prices above 85 dollars a barrel, the stability of production rates, the appointment of a new management for the National Oil Corporation, the need to address high rates of inflation, a decrease in the money supply by more than 20%, in addition to approving an exceptional budget for the institution to increase production capacity.
Al-Akari added that among the reasons are also the passage of one year and nine months since the decision to reduce the value of the Libyan dinar to 4.48 dinars and promises to review this price whenever economic conditions improve, and the state of economic stagnation the country is going through, and one of the reasons is the weak purchasing power of the Libyan dinar, in addition to the need to restrain the government to reduce spending, especially consumer spending.