Libya unifies Dinar exchange rate

Libya has taken an additional step in its economic reform plan and announced the unification of the Libyan dinar exchange rate, ending thereby the many rates currently allowed.

Libya had earlier reduced the official rate change of Dinar by 51% in 2002, in preparation to unify the exchange rate. the deputy governor of the central Bank, Farhat Qidra, said " The official foreign exchange rate has become unified now." Previously, the official rate was used by the state and its companies, while another exchange rate was used for private companies and persons seeking to get foreign currency for traveling abroad, medical treatment or study abroad.

Officials said that exchange rate was not affected by the decision as it was yesterday 1,365170/ 1,358361 for the US dollar in comparison with its previous change rate of 1,363240/ 1,356440.

Libyan bankers and government officials viewed that new simplified foreign exchange system as contributing to overcoming economic differences like the difference in prices and as means to preserving foreign monetary funds.

This step came, however, after the former minister of the economy and trade Shukri Ghanem replaced Mubarak Abdullah al-Shamekh as a prime minister in a government reshuffle several days ago. The unification of exchange rate came following calls made recently by Libya's Leader of the Revolution Colonel Muammar al Qathafi for a fundamental reform in the economic system.