Libya’s dinar float? expert warns of price hikes and black market boom

Former member of the Board of Directors at the Central Bank of Libya, Maraj Ghaith, has warned against recent calls to float the Libyan dinar, describing the move as “economic suicide” with direct repercussions on citizens’ living standards.

Ghaith explained that such a step would inevitably drive prices higher, given that Libya imports around 85% of its basic needs in U.S. dollars, placing further strain on ordinary households.

He added that proceeding with currency flotation amid the current political division would turn it into a “back door” for financing the black economy, pointing in particular to illicit activities such as drug trafficking, human smuggling, and organ trade.

Ghaith stressed that any monetary or financial reform must be built on a unified political framework that ensures transparency and prevents state resources from being diverted into unlawful channels.