Libyan lawmakers reject Dinar devaluation, call for comprehensive economic overhaul

Fifty-five members of Libya’s House of Representatives (HoR) strongly criticized the recent devaluation of the dinar, arguing that the move fails to address the root causes of the country’s deepening economic crisis.

The lawmakers stressed, in a joint statement issued on Wednesday, that adjusting the exchange rate or increasing the dollar price would not resolve the structural challenges facing the economy, and instead urged the implementation of a far-reaching package of reforms.

The MPs condemned the Central Bank of Libya for making monetary decisions without a broader vision or coordinated reform strategy, warning that such isolated actions disproportionately affect ordinary citizens’ purchasing power. They called for the abolition of exchange control exemptions, which they say have fueled excessive public spending and placed undue pressure on foreign reserves. Additionally, they proposed cutting foreign expenditures by downsizing Libya’s diplomatic missions abroad by 80% and curbing non-essential international outflows.

Among their reform proposals, the HoR members recommended prioritizing essential domestic spending, curbing reconstruction rivalries between the East and West, and introducing a five-year national plan to shift from a rentier economy to a diversified, productive model. They also emphasized the need for stricter oversight of public finances, a freeze on non-salary government spending, rationalization of public sector employment, and the formation of a unified national government to end institutional fragmentation and implement reform. Meanwhile, Prime Minister Abdulhamid Aldabaiba defended his administration’s financial strategy, deflecting blame onto the Central Bank, judiciary, and rival political figures.