Dollar reaches 9.5 dinars on parallel market

The US dollar has risen to 9.5 Libyan dinars on the parallel market, continuing its gains against the local currency amid pressure on foreign exchange and prices.

Central Bank of Libya data showed that foreign currency use had exceeded $20bn by the end of August, compared with about $15bn in oil revenues and royalties.

The figures indicate a gap of roughly $5bn between foreign currency use and oil revenues and royalties.

Letters of credit accounted for more than $9bn, or almost half of total foreign currency use, according to the central bank.

The developments come as prices of goods and services continue to rise, adding to pressure on household budgets.

There have also been growing calls for salaries to be reviewed and increased to reflect the rising cost of living, as the dinar’s purchasing power declines and the gap between incomes and prices widens.