The Central Bank of Libya has announced plans to inject foreign currency into the market in the coming days, according to a source cited by the Libya Herald. This initiative is intended to stabilize the exchange market and increase the availability of foreign currency.

On the black market, the Libyan dinar was trading at LD 9.65 per US dollar, significantly higher than the target of under LD 7.00 or a five-percent margin previously promised by Central Bank Governor Naji Issa.

However, the bank source stated that these actions are based on recent improvements in economic indicators and oil revenues, alongside agreements with economic partners aimed at supporting the national economy.

Governor Issa’s London meetings?
The reference to “understandings and agreements” may pertain to either domestic partners, such as the controversial US-brokered Unified Spending Agreement, or international counterparts. Speculation suggests it could relate to Governor Issa’s recent meetings in London.

Governor Issa recently met with the Governor of the Bank of England, the British Foreign Office, and representatives from key Arab, regional, and international financial institutions during his London visit.

Controlling Libya’s deficit
The source emphasized that the Central Bank prioritizes maintaining adequate foreign currency reserves to ensure monetary and financial stability. Additionally, the bank is working to limit the deficit through the end of the year.

Talking the dinar up and the dollar down!
It appears that after a pause, the Central Bank is resuming informal media briefings aimed at strengthening the Libyan dinar and discouraging reliance on the US dollar in the black-market exchange.

However, past efforts over the last two months have failed to bring the exchange rate within the governor’s publicly stated targets.

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