France 24 reported on Monday that Libya has the largest oil reserves in Africa, but many families are suffering from the rapid rise in prices.
Muhammad Al-Wahishi, an employee in the private sector, said that the decline in the value of the currency led to an increase in the cost of food and other imported goods, “so we have to be content with the minimum.”
He added that the monthly income he receives is about $150 at the official exchange rate. “We will soon have to stop buying meat.”
He explained to the French Agency that the Libyan currency being traded officially decreased at a price of 4.8 against the US dollar and recently in the parallel market from about five dinars against the US dollar to 7.5 now.
Economic analyst Abu Bakr Al-Tur said, “Libya is going through a very critical situation with rising prices and a devaluation of the currency.”
He confirmed to Agence France 24 that this had a significant impact on the purchasing power of citizens, who have become increasingly unable to obtain basic products.
The agency explained that Libya, with a population of seven million people, suffers from instability and corruption.
The agency indicated that the Dabaiba government in Tripoli is sharing power and funds in Libya with difficulty with a competing administration in eastern Libya, with the support of Field Marshal Khalifa Haftar.
The agency confirmed that Libya earns about $20 billion annually from net revenues from oil and gas exports, which represents about 95 percent of the state’s revenues.
The cost of living and foreign exchange crisis comes after the Central Bank of Libya announced steps that it said were aimed at ensuring greater financial stability.
The agency continued by saying that letters of credit restricted importation, which is the only legal means for the importer to purchase products in foreign currencies, including purchasing medicines and food products from abroad, as this forced importers of cars, machinery and construction equipment to also go to the parallel market to find foreign currencies.
The agency stated that Libyan families were more affected because the prices of basic foodstuffs such as pasta, rice, sugar and flour, which were previously highly subsidized, are now linked to the level of the dollar in the parallel market.
At the same time, recent months have also witnessed delays in paying state salaries to 2.3 million government employees in Libya and in paying retirement pensions.
Muhammad Al-Warfalli, who was shopping with his wife in a supermarket in Tripoli, said that with the rise in prices, “retirees are the ones who suffer the most.”
He added, “Our pensions have decreased in value, especially for government employees.”
He added that the elderly now “spend their time waiting for their pensions to be paid.”
You can also read the news in the source from the Sada Economic newspaper
#France #economic #situation #Libya #critical.. #citizens #buy #basic
2024-04-07 23:57:58