TRIPOLI, Jan. 12 (Xinhua) -- The Libyan dinar tumbled to a decade-low against the U.S. dollar on the parallel market on Monday amid mounting economic uncertainty and rising tensions between parliament and the country's top financial officials.
The dollar was trading above 9 dinars in major cities, including Tripoli, Benghazi, and Misrata, according to local traders and figures published by Al-Sada Economic newspaper. This is the weakest level the dinar has reached in at least a decade.
The sell-off gathered pace after Naji Mohammed Issa Belgasem, the governor of the Central Bank of Libya, and the head of the National Oil Corporation Masoud Suleman failed to appear before parliament in Benghazi. Lawmakers had summoned them to explain the country's worsening public finances.
Parliament said the two officials asked for the hearing to be postponed, but did not give clear reasons.
The sharp fall in the dinar has widened the gap between the official rate, held by the central bank at about 5.42 dinars to the dollar on Monday, and the parallel market rate, which climbed above 9 dinars as demand for dollars surged.
Analysts attribute the currency's decline to cash shortage, the central bank's limited ability to supply dollars, and ongoing policy instability.
Economists warned that the weaker dinar is likely to push up inflation in Libya, which relies heavily on imports, hike prices for basic goods and services, and further squeeze households already hit by years of conflict and economic mismanagement. ■