Libyan Dinar
- Country: Libya
- Currency: Dinar
- Alias: Libyan dinar
- ISO 427 CODE: LYD/434
- Symbol: LD
The dinar is the national currency of the African nation of Libya – formally known as the Great Socialist People’s Libya Arab Jamahiriya. The currency was introduced by the Central Bank of Libya in 1971, replacing the Libyan pound. Libya is Africa’s fourth largest country by land area, and is home to almost 6 million people. The country experienced an extended period of isolation in the 1990s as a result of sanctions imposed by the United Nations and by the United States after Libyan-sponsored terrorist activity in the 1980s. The sanctions have since been lifted, and Libya is working to restore diplomatic relations.
Background of the Libyan Dinar
Libya had been a colony of Italy, and was the scene of brutal fighting during World War II. By January 1943, the country was in British hands, and with the support of the United Nations, Libya was officially granted independence on December 24, 1951. The Libyan pound served as the national currency for 20 years, when it was replaced by the Libyan dinar.
Libya’s economy is dominated by its oil industry. Oil was first discovered in June, 1959, and now represents approximately 95% of the country’s exports.
Libya has had a somewhat troubled international relations in modern times. The ascension of Mu’ammar Abu Minyar al-Qadhafi to power via a coup in September 1969 marked the beginning of a long period of instability. Within a decade, relations with the United States began to sour, and within 20 years, Libya stood accused of being responsible for some of the most horrific acts of modern terrorism ever recorded. The United Nations imposed sanctions on Libya beginning in April, 1992 which had devastating effects on the oil industry. The sanctions were officially lifted in 1999.
Extended isolationism has led to Libya being a cash-only society. Travelers will be disappointed to know that credit cards, debit cards, and traveler’s checks will be of little use to them.
The Libyan government has sought to bring the dinar in line with the U.S. dollar. In 2000, the exchange rates was set at US$1 = $3.2LD. By May, this had become US$1=1.6LD.
The Libyan dinar is divided into 100 piastres or 1000 dirhams (also known as mileem). Denominations for coins are 10 piastres, 25 piastres, 50 piastres and 1 LD. Denominations for banknotes are 0.25 LD, 0.5 LD, 1 LD, 5 LD and 10 LD.
