Socioeconomic Impact of Currency Devaluation: Libya
Mention d'impression
Rome (Italy): World Food Programme (WFP), 2021.
Note sur les langues
English
Description
16 p.
ISSB
WFPELR3363
Résumé
A currency devaluation means that imports will get more expensive and this might trickle down to domestic retail prices, reducing the purchasing power of households, especially the vulnerable. In this paper, we assess the political situation, the wider macroeconomic context (oil sector, GDP growth, accounts imbalances, and structure of external sector), and developments in the cost of minimum expenditure basket (MEB) and its food components to understand whether the country is in a position to sustain imports; to safeguard the livelihoods of the most vulnerable; and where the exchange rate might be headed looking ahead. The analysis in each section presents the current situation (status quo) and forecasts for 2021. Furthermore, two main scenarios are presented to understand how purchasing power of households might be affected by the interplaying multiple factors.
