The dinar’s exchange rate is now set at 5.5677 to the US dollar, effective immediately.

This is the first official devaluation of the currency since 2020 when the rate stood at 4.48 to the dollar.

Simultaneously, the dinar is trading at a much lower rate on black markets.

This rate has experienced significant fluctuations in the past few months following the struggle for control of the central bank that resulted in reduced oil production and exports.

The issue was resolved through a UN-initiated agreement between the eastern and western legislative houses to appoint a new governor for the central bank.

Libya has experienced persistent instability since a 2011 uprising, which led to the establishment of the rival administrations.

During the weekend, the bank stated that the total expenditure by the two governments in 2024 amounted to $46 billion, while the public debt stood at nearly $56 billion.

However, it cautioned that this could exceed $68 billion if a unified budget was not formulated by the two sides.

In December, the United Nations mission to Libya called on them to reach an agreement on a spending framework for this year with accepted limits and oversight.