Former board member of the Central Bank of Libya, Imrajea’ Ghith, argued that injecting large amounts of dollars into the market cannot provide a real solution to the exchange‑rate crisis. He explained that any initial drop in the dollar’s value would be temporary, as the currency would quickly rise again due to demand that extends far beyond official channels.
In a recorded statement published by Sada Al‑Iqtisadiya, Ghith noted that a significant portion of the demand for foreign currency comes from hidden networks involved in arms trafficking, drug smuggling, human‑trafficking operations, and other illicit activities. These groups, he said, are willing to buy dollars at extremely high prices sometimes up to 50 dinars per dollar, making the policy of market flooding ineffective. He added that addressing the crisis requires increasing the availability of goods rather than pumping more currency, since Libya’s dollar problem is tied to transnational organized crime.
Ghith stressed that the core issue lies in the lack of oversight over how dollars are used and where they end up. He pointed to the widespread use of “personal‑use cards,” which every Libyan receives from birth, even though most citizens do not travel for tourism and only a small number travel for medical treatment. These cards, he said, are routinely diverted to the black market, which he described as a “black hole” that must be closed through different mechanisms.
As a practical step, Ghith suggested allowing commercial banks to import physical U.S. dollars and sell them directly to citizens who genuinely need them. He argued that cash dollars naturally limit smuggling because large amounts are difficult to move, and even in other countries, carrying more than four to five thousand dollars is considered suspicious. In contrast, he noted that the current system allows individuals to collect thousands of personal‑use cards, converting them into millions of dollars that can be smuggled abroad with ease.
He also referenced a recent case in Turkey, expressing hope that its repercussions would not expand further. Ghith warned that international investigations into money‑laundering cases can remain open for decades, and banks may be questioned about transactions long after they occur.
Ghith emphasized that the roots of the black‑market crisis are economic rather than security‑related, noting that shutting down traditional markets such as Souq Al‑Musheer does not eliminate the parallel market. He explained that the real centers of influence are encrypted WhatsApp groups operating from cities like Dubai and Istanbul, where Libya’s daily exchange rate is effectively set through a handful of phone calls.
He concluded by saying that security measures may deter small‑scale traders. Still, the major players, those handling large volumes, remain active in these hidden online rooms, and they are the ones who ultimately determine the real market price.