Libya: Economy Crisis
Tripoli, Libya 20/11/2016
The near-bankrupt Libyan economy is facing the threat of a forced devaluation of its currency and an end to fuel subsidies in a move that could spark a wave of popular anger and the fall of the teetering UN-backed government in Tripoli.
Over the weekend, the Libyan dinar collapsed 7% against the US dollar and for the first time was trading at 6 dinars to the dollar on the black market. The official rate is 1.4 dinars to the dollar (1.74 to the sterling pound).
A recent agreement reached in London and Rome between Libyan politicians and technocrats, brought together by intervening Western leaders and financial institutions including the World Bank, has culminated in the drawing of the new Libyan’s economic plan for 2017. It will be published on 1st December.
People are certainly feeling the pressure of the economic crisis. The country’s finances have eroded significantly and if the current political turmoil is not solved then Libya’s reserves will run out.
Libya’s youths, struggling to find employment or to make ends meet, are also finding their chances of ever getting hitched and settling down a thing only made in dreams.
To get married, man has to present his intended with a set of golden jewelry as well as a dowry. But with the recent hike in the price of the gold, men’s hopes of ever getting married are being dashed.
The credibility of the National Accord government continues to decline, despite the support of the US, France, Italy and the UK, and with its leadership unable to unite the country.
To get the economy to move more smoothly is an absolute requirement in terms of the credibility of this government.