The Libyan currency black market experienced notable fluctuations in the exchange rates of the US Dollar and the Euro against the Libyan Dinar from early September to 6 October 2025. These sharp movements were a direct result of several domestic factors, including monetary measures by the Central Bank of Libya (CBL), crackdowns on the black market, and changes concerning the phasing out of old banknotes. This report offers a detailed analysis of these market dynamics and identifies the key variables influencing the local currency’s stability.
These exchange rate shifts were primarily influenced by several factors. Chief among them were the CBL’s liquidity injection initiatives, notably the decision to distribute half a billion dollars for personal use via exchange companies. Furthermore, regulatory pressure exerted through market raids and the withdrawal of older banknotes (the LD 5 and LD 20 notes) drove market changes. Speculative activity on foreign currencies, often conducted via unofficial platforms like WhatsApp during holidays, also played a crucial role in amplifying price volatility. Regionally, the movement of Arab currencies was partly linked to their performance against the dollar globally.
During the initial phase of September, the US Dollar saw a continuous climb, peaking at LD 7.82, while the Euro stabilised at LD 8.84. Amid heightened speculation regarding the removal of old notes from circulation, the Dollar later resumed its choppy ascent in late September, trading between LD 7.27 and LD 7.39. Conversely, the Dinar saw a temporary rebound mid-September, pushing the Dollar down to LD 7.53–7.58, a bounce attributed to improved liquidity and limited interventions by the CBL. By early October, the Dollar briefly dipped to LD 6.89 (on 4 October) before rising again to LD 7.05 (on 6 October), signaling a persistent cycle of short-term volatility.
The Euro and the Sterling Pound followed similar trajectories. The Euro dropped from LD 8.86 in early September to LD 8.01–8.08 in early October, reflecting the impact of both CBL interventions and local liquidity pressures. The Sterling Pound mirrored this trend, falling from LD 11 in September to LD 9 on 6 October. On a regional scale, the Jordanian Dinar gradually declined from LD 11 to approximately LD 9.70–9.85 by early October, and the Tunisian Dinar traded at the Ras Ajdir border crossing shifted from LD 2.65 to around LD 2.22–2.25, while the Egyptian Pound maintained relative stability between LD 0.14–0.17.
The overall data indicates sharp, sustained fluctuation in Dollar and Euro rates. While the CBL’s interventions produced temporary strengthening of the Dinar, long-term stability remains elusive. The Dinar’s gains against regional currencies reflect its relative strength in the area, yet the Dollar and Euro remain the principal focus of black market trade. The key conclusion is that government interventions provide only temporary support, and continued speculation, compounded by unofficial trading methods, reinforces volatility. Sustained efforts by the CBL to distribute foreign currency may gradually diminish the impact of speculation, while tracking Arab currency rates offers an early indicator of broader market trends