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Libya will reduce fee on FX transactions if rate gap narrows, GNA official says

The Address | Benghazi – Libya

TRIPOLI – Libya will gradually reduce a fee of 183 percent on foreign currency transactions once a spread between official and black market narrows, an official at the proposed Government of National Accord said on Wednesday as reported by Reuters.

Last month, GNA imposed a fee of 183 percent on hard currency transactions, effectively revaluing the dinar to 3.9 versus the dollar compared with the official rate of around 1.4.

“The purpose of imposing high fees… is to absorb or withdraw the money supply from the dinar in the (parallel) market or the so-called cash mass outside,” said Imhamid al-Darweesh, economic consultant of the U.N.-backed administration.

“The fees will be gradually reduced in line with the devaluation of the dollar on the black market … until the stability of the dollar exchange rate reaches a certain level,” he said, without giving a target.

His comments came after a senior official said late on Tuesday the rate was not fixed, without elaborating.

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