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The Libyian currency is pegged to the US dollar due to the USD being used as the global reserve currency.
When a currency is used as a reserve, a foreign state must use it as the medium of exchange on international markets.
As the USD is printed through the process of quantitative easing by the Federal Reserve (for the purpose of lowering interest rates, and monetizing debts), countries which need the USD to make international purchases must also print their currency in order to purchase all of the new US dollars to maintain the currency peg. As they print, the value of their currency declines resulting in rising asset prices (inflation).
As the cost of goods rises, people with low wages can no longer afford to buy basic materials, and their standard of living falls severley, resulting in civil unrest.
Wiki User
∙ 12y ago
Wiki User
∙ 8y agoCurrently Libya is in a state of change to the point of unharnessed change. Political and religious groups are competing for power. Travel to Libya from other nations is low and the nation can be said to be "unstable". The challenges are thus to have a stable democratic government, renewed economic development, made difficult by the low cost of oil, and continued efforts to stabilize its social structure.
Wiki User
∙ 8y agoConsidering that, as of 2016, the country is embroiled in a civil war, the main economic and political challenge is having a stable environment in which to live, never mind all of the tribal hatreds in Libya, the theocratic/secular divide in governance, the lack of education for the majority of the Libyan population, chronic underdevelopment of infrastructure, and lack of resources other than petroleum.
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What are the political parties in Libya?
Political parties are starting to develop in Libya with the rise of the Libyan Muslim Brotherhood, the Democratic Party, Islamist political groups, secularists, etc.... During the Gaddafi era, Gaddafi himself banned political parties.
What political system does Libya use?
Currently, as of 2014, Libya is in a political state of flux. It used to have a stable autocratic regime under Muammar al-Ghadhafi, in what could be a considered a Caudillo-State. Currently, Libya is officially a democracy, but the military has recently overthrown the government and called for elections.
Does Poland have political problems?
All countries have political problems.
Who are some prominent political figures in Libya?
Some of the most prominent political figures in Libya are Wahbi al-Bouri, Abdul Salam al-Buseiri, Mohieddin Fikini and Abdul Majid Kubar. All of the above listed political figures are foreign ministers.
Examples of political instability?
Libya, Iraq, Pakistan, etc - etc - etc.
How many british soldiers have died in libya conflict?
In the recent struggle to settle the political disagreement in Libya no British soldiers have died, there was only causalities.
Does Afghanistan have political problems?
Yes there are lots of political problems there due to the war and its consequences.
What political problems does southwest Asia have?
one of the political problems is how Turkey want their government by Islamic law
How do the political issues in Africa affect Africa's economy?
The political problems cause instability, hurting economics development.
What European country granted independence to their African colonies due to a political coup in their home country?
Libya
Why is there civil war in Libya?
There is a war in Libya because many of the citizens want Godaffi to give up his political power, and to establish a new form of government that they believe to be more fair to its people.
How have Haitis political problems influenced its economic problems?
Yes
