LYD Libyan Dollar What It is Libyan Economy
LYD (Libyan Dollar): What It is, Libyan Economy
What Is the Libyan Dinar (LYD)?
LYD is the currency abbreviation for the Libyan dinar, the official currency of Libya, a country in Northern Africa. The Libyan dinar is often called "jni" or "jenh" locally in Libya. The abbreviation LYD is often used for the Libyan dinar in the foreign exchange market, where currencies are bought, sold, and exchanged.
As of July 2022, 1 LYD is equal to U.S. $0.20.
Key Takeaways
-The Libyan dinar (LYD) is the official currency of Libya.
-The LYD replaced the Libyan pound in 1971. The pound succeeded the French Ottoman piastre as official currency after gaining independence in 1951.
-The Libyan economy is highly dependent on oil and petroleum exports, and the country has experienced political upheavals and armed conflicts over the past decades.
Understanding the Libyan Dinar
The Libyan dinar is made up of 1,000 dirham and is often presented with the symbol "LD." The word dirham is never used in everyday language, but the word "garsh," which refers to 10 dirhams, is used instead.
Libya was once a part of the Ottoman Empire and used the Ottoman piastres as currency. After being colonized by Italy in 1911, Libya adopted the Italian lira as its currency. It gained independence in 1951 and introduced its own currency, the Libyan pound, which was replaced by the LYD in 1971 when the country established a new central bank.
Various currencies were used in Libya before independence, including the Italian lira, Algerian franc, and Egyptian pound. Libya was part of the Ottoman Empire and later became an Italian-controlled territory from 1911–1943. Following World War II, the nation was under Allied occupation forces until its independence in 1951.
In 1971, the Libyan dinar replaced the Libyan pound at par. The currency is now issued in bills for 1, 5, 10, 20, and 50 dinars, and coins for 50 and 100 dirhams, as well as ¼ and ½ dinars.
Libya’s Economy
Libya is a member of OPEC, an international cartel of oil-producing nations, and its economy is largely dependent on petroleum production. It began exporting oil in 1961, with oil and gas accounting for about 82% of the country’s export earnings and 60% of its total GDP.
However, in the last decade, the country’s economy has been affected by political events in the region and the decline in global oil prices due to the Covid-19 pandemic. In 2011, widespread protests and a civil war occurred in Libya. In 2014, another civil war broke out. The instability and violence that followed have significantly impacted the country’s economy.
Published data shows that Libya’s oil exports declined by as much as 77% between 2014 and 2016 due to war, political instability, and oilfield blockades. In 2017, there was a boom in oil production, which helped spur GDP growth. However, as of 2021, the country had not yet returned to its pre-war levels of oil revenue or production, which reached 1.3 million barrels per day in 2010.
Published data shows that Libya’s oil exports declined by as much as 77% between 2014 and 2016 due to war, political instability, and oilfield blockades. In 2017, there was a boom in oil production, which helped spur GDP growth. However, as of 2021, the country had not yet returned to its pre-war levels of oil revenue or production, which reached 1.3 million barrels per day in 2010.
