The
dinar is the
currency of
Libya. Its
ISO 4217 code is "LYD". The dinar is subdivided into 1000
dirham (درهم). It was introduced in September 1971 and replaced the
pound at par. It is issued by the
Central Bank of Libya, which also supervises the banking system and regulates credit. In 1972, the
Libyan Arab Foreign Bank was established to deal with overseas investment. Ali Mohammed Salem, deputy governor of Central Bank of Libya stated the
exchange rate of Libyan dinar would be pegged to
special drawing rights for one to three years, according to an interview to Reuters on 27 December 2011.