Libyan entrepreneur Husni Bey has said the Central Bank should devalue the dinar due to the growing trade deficit.
The head of the HB Group said “To balance the budget the Libyan dinar must be devalued to a minimum of 2.0 to the US dollar,” much lower than the current exchange rate of 1.25 to the dollar.
According to a report from Reuters, he said that oil revenues could bring in as little as $20 billion this year, down from almost $50 billion in 2013, while annual imports were costing $30 billion.
Gasoline imports have risen to $650 million a month as a result of restricted supplies of crude oil to the country’s refineries.
“Many Libyans, rich and less rich, are taking their children and wives to safer places for fear of the unknown and for fear of crime,” said Bey. His firm’s sales have fallen by 20% in the past three months.