The parallel market dollar raises the price of gold in Libya towards new rates

Gold prices in Libya jumped to new levels; The price of a 24-carat gram reached 400 dinars ($82.8), with rates of increase ranging from 25% to 33% compared to last year.

Traders in the gold market told Al-Araby Al-Jadeed that the rise came as a result of the increase in the price of the dollar in the parallel market since the end of last October.

The gold trader in the Abu Salim market in Tripoli, Muhammad Al-Zalitni, told Al-Arabi Al-Jadeed that the gold trade is witnessing a major stagnation and purchasing is limited to social occasions only or to those who sell their gold savings due to the high prices and the high exchange rate of the dinar.

For his part, the trader in the gold market in the center of the capital, Tripoli, Muhammad Shalabi, confirmed to Al-Arabi Al-Jadeed that the price is linked to the parallel market for the currency and not the official market.

Demand for gold declined
He says that the cost of buying gold for a wedding ranges between 7,000 and 10,000 dinars, and the vast majority of society groups only buy in the range of 3,500 dinars due to weak purchasing power. He adds: “In recent years, there has been a demand for buying gold, unlike the recent period.”

The gold market, in central Tripoli, is almost devoid of buyers, in light of the decline in demand for the yellow metal, due to its high prices, and the decline in the purchasing power of Libyans in recent periods.

Economic analyst Ahmed Al-Mabrouk said, in statements to Al-Araby Al-Jadeed, that the price of gold is the true measure of the inflation rates occurring in the country, and the rise in the price of the yellow metal comes as a result of the rise in the price of the currency.

He adds: “There are external factors, including the Israeli aggression on Gaza, which contributed to the rise in the price of gold globally, as well as the increase in demand from wealthy consumers in emerging markets, especially India.”

A large number of Libyan families have resorted to selling their gold savings as a result of the difficult economic conditions that the country is going through, including lack of liquidity and high inflation, in conjunction with the high price of gold in the local market.

The exchange rate of the dollar in the parallel markets recorded a significant increase compared to the official price, as it reached a ceiling of six dinars in the Libyan capital, while the official price reached 4.83 dinars.