Rédaction Africa Links 24 with Sami Zaptia
Published on 2024-02-25 21:28:18
The black-market value of the Libya dinar has plummeted as the security forces tasked with protecting the country’s oil installations, the Petroleum Facilities Guards (PFG), shut down several oilfields and pipelines. This has caused the dinar to weaken even further against major foreign currencies, with the exchange rate reaching LD 8 to the dollar for the first time in nearly a decade.
The Tripoli government-backed security forces recently intervened in the main currency black-market, forcing its closure. Despite this, traders were still able to conduct transactions through private WhatsApp groups, leading to a surge in the price of the dollar to over LD 8.
The PFG had given the government in Tripoli, led by Abd Alhamid Aldabaiba, a 10-day ultimatum to meet their demands, which they claim are supported by Libyan law. However, the government failed to respond within the given time frame.
Consequently, the PFG announced the closure of production at the Zawiya refinery and port, the Mellitah complex and port, and the shutdown of the Green Stream gas pipeline to Italy. They also halted operations at the Al-Feel and Al-Wafa fields, with plans to gradually cease production at Al-Sharara as well as the Al-Watiya and Nalut pipelines.
The PFG asserts that they are simply seeking their legitimate rights as determined by a court ruling issued in 2007, a ruling that successive governments have ignored. They claim that Prime Minister Aldabaiba had previously made promises in December to address their grievances promptly but failed to follow through. The PFG had warned him that the oil fields would be closed if their demands were not met.
In a late development, Aldabaiba issued a decree today proposing to tie PFG salaries to a specific military paygrade. However, the PFG rejected this offer, emphasizing that they are affiliated with the National Oil Corporation and should not be considered part of any military structure.
The ongoing conflict between the PFG and the Tripoli government has resulted in further economic instability in Libya, with the dinar’s value continuing to plummet. It remains to be seen how this situation will be resolved and what impact it will have on the country’s already fragile economy.
Read the original article on Libya Herald
