STATUS OF THE RV PART 2
Today I also wanted to bring you news of what just happened in Libya with theor currency. We need to look at these other middle eastern countries and learn lessons from them too.
The Libyan Dinar Saga:
On 20 January 2025, the Central Bank of Libya (CBL) had announced the issuance of new banknotes in the 5-, 10- and 20-dinars denominations in the coming weeks and months. Yes, their newer lower denominations. The LD 10 denomination was issued on 26 January. All the new denominations bear the signature of the new CBL Governor, Naji Issa. The CBL said the new denomination will go into circulation along with the currently circulating issuances, starting today, Thursday, 27 March.
Just so you know today 1 Libyan Dinar = 0.21 US Dollar (21 cents)
What can we learn from this Libyan Dinar?
Remember that the politics of Libya has been shaped by the “shallow state” ceded by former authoritarian leader Muammar Gadhafi, who was overthrown in 2011. It took Libya 14 years to restructure their country and finally get back their currency. Iraq is now in this same process and it is taking a bit longer than Libya due to its association and corruption with Iran. Remember that Iran is still part of the axis of evil.
So what can we learn from this latest redenomination in Libya?
First, we can learn that Libya “gradually” rolled out the new lower banknote denominations.
Secondly, we can also see that the rate is 21 cents not thousands of dinars per dollar.
Third, we can ask the question of how can Iraq expect to trade in an environment of the middle east where many, if not all, of their trading partners have currencies that have been already “normalized” and lower denominations as legal tender?
My final point about this Libyan dinar saga is that we all know Iraq is chock-full of resources with many more assets than Libya and even many other middle eastern countries. Why is the Iraqi dinar then still suppressed? Oh….but what is important about Libya is what has been told to us in the recent articles from Iraqi news. Did you pick up on what these articles said. I hope you did but I will present a couple of the articles to you again below: (pay attention!)
No comments:
Post a Comment