UN praises Libya’s Central Bank for changing currency exchange rate

Central Bank of Libya is located in the center of Tripoli, near of Assaraya Al-Hamra and Martyrs' Square. (Getty Images)
Central Bank of Libya in the center of Tripoli, Libya near of Assaraya Al-Hamra and Martyrs’ Square

The United Nations Support Mission in Libya (UNSMIL) praised on Wednesday the decision of the Central Bank of Libya to change the exchange rate of its local currency.

“The UNSMIL applauds the Board of Directors of the Central Bank of Libya for the decision taken in this morning’s long-awaited meeting to unify the exchange rate, as an important and much needed step towards alleviating the suffering of the Libyan people and a good sign that this vital sovereign institution is moving towards unification,” UNSMIL said in a statement.

“Now is the moment for all Libyans — particularly the country’s political actors — to demonstrate similar courage, determination and leadership to put aside their personal interests and overcome their differences for the sake of the Libyan people in order to restore the country’s sovereignty and the democratic legitimacy of its institutions,” said Acting Special Representative of the United Nations Secretary-General Stephanie Williams.

The Central Bank of Libya on Wednesday changed the local currency the dinar’s exchange rate against the U.S. dollar, in an attempt to introduce economic reforms in the country.

“The Board of Directors of the Bank held the first meeting of the year 2020 to discuss a report made about options of changing the dinar’s exchange rate. The new exchange rate is 4.48 dinar against one U.S. dollar,” the bank said in a statement.

“This rate will enter into force on Jan. 3, 2021 and will be available for all governmental, commercial and personal uses,” the statement added.

The previous exchange rate of the Libyan dinar was around 1.4 dinar against one dollar.

Due to years of armed conflicts and political instability, the Libyan economy has been suffering and local banks severely lack liquidity.