Libyan economist Ali al-Sharif has expressed support for the government's decision to reinstate the customs dollar. In a statement on social media, al-Sharif described the move as a step in the right direction. He suggested that the new rate should be higher than the current 2.12 dinars per dollar but lower than the official exchange rate of 6.41 dinars. This, he believes, will help strike a balance between public revenues, import costs, and citizens' purchasing power.
Al-Sharif had previously opposed the abolition of the customs dollar due to concerns about its uniform implementation across the country. He noted that multiple government agencies and ministries oversee financial management, which could lead to inconsistent application and procedures. The economist warned that linking import costs directly to the exchange rate would increase costs and potentially inflate prices in the local market.
The Libyan Ministry of Finance announced on Tuesday, November 2, 2026, that it would reinstate the customs dollar at 2.12 dinars per dollar. This decision was made to address difficulties that hindered the implementation of the previous decision. The ministry stated that the new rate would be used to calculate customs duties and taxes on imported goods until further notice.
The customs dollar is used to determine the value of imported goods in Libyan dinars, which in turn affects the calculation of customs duties and taxes. By adopting a rate of 2.12 dinars per dollar, the value of customs duties will be lower compared to the official exchange rate of 6.41 dinars. This could lead to reduced costs for importers and potentially lower prices for consumers.
Al-Sharif emphasized the need for a balanced approach that takes into account public revenues, economic stability, and citizens' purchasing power. He called for a realistic customs policy that can be applied uniformly across the country. The economist's suggestions aim to address the distortions in the market and provide a more stable economic environment.
The Libyan government has been working to address economic challenges, including a shortage of foreign currency and a widening gap between the official exchange rate and the black market rate. The return of the customs dollar is seen as a step towards stabilizing the economy and reducing the burden on importers and consumers.
The decision to reinstate the customs dollar has been welcomed by some as a measure to ease the pressure on importers and consumers. However, others have expressed concerns about the potential impact on public revenues and the overall economy. The government will need to carefully manage the new rate to ensure that it achieves its objectives and minimizes any adverse effects.
Key points
- Libyan economist Ali al-Sharif supports the return of the customs dollar but recommends a new rate to balance public revenues and import costs.
