April 10, 2017 / 3:38 PM / 3 years ago

Libyan dinar drops to record lows on black market

TRIPOLI, April 10 (Reuters) - Libya’s dinar has slid to record lows on the parallel market, traders said on Monday, as scarcity of foreign currency drove the price of a dollar up to 8.3 dinars.

The dinar has steadily weakened on the flourishing informal market as a U.N.-backed government that arrived in Tripoli a year ago has failed to stabilise the country politically or economically.

Oil production, which is the only significant generator of dollar revenue and national income, has recovered somewhat, but not sufficiently to offset high rates of spending on state salaries and subsidies.

For most of last year $1 cost 4-6 dinars on the parallel market. The official exchange rate is 1.4 dinars to the dollar, which the central bank in Tripoli has maintained despite some economists and politicians urging it to devalue. (Reporting by Ahmed Elumami; Writing by Aidan Lewis; Editing by Toby Chopra)

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