## Libya: Selected Issues

_IMF Staff Country Reports, July 11, 2024_

## Source details

**Canonical URL:** [Libya: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/07/11/libya-selected-issues-551684)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/07/11/libya-selected-issues-551684/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/07/11/libya-selected-issues-551684/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/07/11/libya-selected-issues-551684/bundle-manifest.json)

## Bibliographic details
- Published: July 11, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400282195.002

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### Overview
- This Selected Issues paper identifies the sources and quantifies the exchange market pressures on the Libyan dinar.
- Highlights:
  - (1) the cumulative pressure on the exchange rate has been negative; and
  - (2) despite the alternating appreciation and depreciation pressures, foreign exchange reserves have remained relatively stable.
- The authorities’ toolkit is limited: they strive to maintain the stock of reserves at a high level and to keep the exchange rate peg intact, all without the use of fiscal policy or of conventional monetary policy instruments.

### Findings
- Cumulative exchange market pressure on the Libyan dinar has been negative.
- Foreign exchange reserves have remained relatively stable despite alternating appreciation and depreciation pressures.
- While Libya experienced periods of both depreciation and appreciation pressures, overall it faced substantial depreciation pressure.
- Over the medium term, Libya’s policies were not in line with the three-pronged macroeconomic objective of:
  - maintaining high foreign reserves,
  - a pegged official exchange rate, and
  - a narrow gap between the parallel and the official exchange rates.

### Policy recommendations
- Develop conventional monetary policy tools to expand the authorities’ toolkit beyond reserve management and maintaining the peg.
- Ensure fiscal policy is consistent with overall macroeconomic objectives to support exchange rate stability.
- Use additional monetary tools and fiscal policy to help:
  - contain the parallel market premium, and
  - avoid resorting to capital flow measures.

### Topics
- Central banks
- Currency markets
- Depreciation
- Exchange rates
- Financial markets
- Financial regulation and supervision
- Foreign exchange
- International reserves
- National accounts

*International Monetary Fund — Libya: Selected Issues (July 11, 2024).*

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## Content in this bundle

- **Libya: Selected Issues; IMF Country Report No. 24/207; May 30, 2024**
  - [Libya: Selected Issues; IMF Country Report No. 24/207; May 30, 2024 (Markdown version)](/-/media/files/publications/cr/2024/english/1lbyea2024002-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Libya: Selected Issues; IMF Country Report No. 24/207; May 30, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1lbyea2024002-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/07/11/libya-selected-issues-551684_