Libya’s currency has plummeted to unprecedented levels following a 13.3% official devaluation on April 6, with the black market rate soaring above 7.20 dinars per dollar. The crisis stems from plunging oil revenues and intensifying political instability between rival eastern and western factions. While Harouge Oil has resumed limited production at its Amal Fields, pumping 1,500 barrels daily, analysts warn this modest gain cannot offset broader revenue declines. The Presidential Council and High Council of State have criticized the Central Bank’s devaluation decision, arguing it worsens fiscal problems while eroding purchasing power. Political factions in eastern Libya have shut down major oil fields in protest over central bank disputes, further restricting foreign currency inflows. With public debt reaching 270 billion dinars and potentially exceeding 330 billion by year-end, the situation is compounded by Russia’s growing influence in the country, raising Western concerns about Libya becoming a new geopolitical flashpoint amid fears of renewed civil war.
Source: Oilprice.com
