The Ministry of Economy and Trade of the Government of National Unity has raised concerns over significant distortions in foreign trade, stating that oil revenues are being diverted from their role in supporting living standards to fuel private profits through exchange rate exploitation. According to a ministry statement, while the Central Bank of Libya issued letters of credit exceeding $1.06 billion for the import of electronics, household appliances, and mobile phones at subsidized rates, many of the beneficiary companies subsequently priced these goods according to the parallel market rate. This practice has resulted in a 60% surge in consumer prices.
Urgent statement from the Central Bank of Libya warns of severe economic deterioration
The ministry described these actions as a direct violation of commercial law, imposing what it termed “unannounced taxes” on citizens, particularly those with limited incomes, through inflated costs. The statement emphasized that addressing these imbalances requires a comprehensive economic overhaul rather than fragmented measures, calling for unified state action to regulate markets and ensure transparent pricing. Reaffirming its commitment to reforming basic commodity pricing and rectifying economic trajectories, the ministry urged relevant authorities to support these efforts to achieve lasting economic stability and social justice.