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(Bloomberg) — Libya’s central bank devalued the dinar by 13% as the divided OPEC member grapples with a decline in crude revenue that a plunge in global oil prices stands to worsen.

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The Libyan currency will now trade at 5.5677 per US dollar, the regulator announced on its Facebook page on Sunday. The move seeks to create balance in the economy amid high demand for foreign exchange, while supporting the dinar with reserves is unsustainable, it said.

The bank put oil revenue at $5.2 billion for the first quarter of 2025, far below spending commitments for Libya’s two rival governments that total about $9.8 billion.

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The inability of energy income to cover “double public spending” and increased FX demand is a “grave issue,” the Tripoli-based central bank said. It may become “more grave in the event of a decline in oil production,” changes in export volumes or “a deterioration in global oil prices.” 

Crude prices tumbled more than 10% last week after President Donald Trump rolled out the highest tariffs in over a century on the US’s trading partners, and OPEC+ announced a plan to boost supply in May by triple what was originally intended. 

Libya, which is home to Africa’s largest oil reserves and can produce more than 1.3 million barrels a day, has been plagued by upheaval since the chaotic ouster of long-time ruler Moammar Al-Qaddafi in 2011. Disputes between dueling governments in the east and west often lead to disruptions in the sector, making the country an on-off supplier to the world.

Output slumped for several weeks in August and September after authorities in Libya’s east imposed a blockade amid a dispute with its western rival over who would lead the central bank, which is custodian of the country’s vast oil revenue. The United Nations helped broker a compromise.

Libya saw $18.6 billion from oil sales in 2024, the central bank said Sunday. That was down from about $20.7 billion the year before. 

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