While instability prevails in Western Libya with renewed violence in Tripoli, the Government of National Accord (GNA) pushed forward two economic measures. Such policies could ease the pressure on Tripoli and the region, but also have the potential to backfire. On 19 September, GNA Head Fayez al-Serraj passed the much awaited devaluation decision – devaluing the Libyan dinar by 185% – and the Central Bank announced that the $500 per person sum would be paid to all the head of households starting from 24 September. The new rate (3.9~) LYD-USD will also be applied to all new Letters of Credit and personal transfers. It is unclear yet what kind of impact these policies will have in a context of the conflict in Tripoli. In short, without a sustainable security arrangement in the capital reflecting a stable political settlement in the near to medium-term future, lawless and conflict are likely to expand in Tripoli, undermining security throughout the western region.
GNA pushes forward economic measures