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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.
What else can I help you with?
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.
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.
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.
Examples of political instability?
Libya, Iraq, Pakistan, etc - etc - etc.
Does Poland have political problems?
All countries have political problems.
When did tripoli become the national capital of Libya?
Tripoli became the national capital of Libya in 1951, when Libya gained independence from colonial rule. The city was chosen due to its historical significance and status as the largest city in the country. Since then, Tripoli has served as the political and administrative center of Libya.
Does Afghanistan have political problems?
Yes there are lots of political problems there due to the war and its consequences.
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.
What is libya's stance on NPT?
Libya was a signatory to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) but had a complicated relationship with the treaty, particularly under Muammar Gaddafi's regime. In 2003, Libya announced the abandonment of its nuclear weapons program and agreed to allow inspections by the International Atomic Energy Agency (IAEA), reaffirming its commitment to the NPT. However, following the 2011 civil war and subsequent political instability, Libya's adherence to the NPT has been uncertain. The current stance of Libya may vary depending on the prevailing government and political situation.
What political problems does southwest Asia have?
one of the political problems is how Turkey want their government by Islamic law
