Quote Originally Posted by Fuchs View Post
Their external debt is most likely not documented in their national currency, but in USD or another currency.

Most of their trading will be in foreign currencies as well, so their domestic currency value/exchange rate has little bearing on their trading.
That's not correct Fuchs. Especially in the italian trading experience.

You have to understand that Italy has a very long history of commercial trade with Libya and this history has witnessed different phases and the presence of a big number of very small little actors in both side of th bargain.
Small business selling small business buying.

In this framework the problem of libyan dinar conversion has played a role. Sometime a very lucrative role. Payments made in nature could open the way to make great business. During embargo there was a complex system to make receive payments.

Think only about this problem: there are big enterprises that have credits for million of dinars. The dinar had a different value in black market and official trade. The credits are from the eighties and are part of the strategic agreement signed in 2008. In the eighties there were libyan dinar for external payments and dinar only for internal use.
The conversio that will be applied will make a very relevant role in the evaluation of these credits/debts (those could become billion of euros!!)

Thanks Rex for reply