Libya Joint Market Monitoring Initiative (JMMI) February 2018
In an effort to better understand market dynamics in Libya, the Joint Market Monitoring Initiative (JMMI) was initiated by the Libya Cash & Markets Working Group (CMWG) in June 2017. The initiative is guided by the CMWG Markets Taskforce, led by REACH and supported by the CMWG members. It is co-funded by OFDA and UNHCR. Markets in key urban areas across Libya are assessed on a monthly basis. In each location, field teams record prices and availability of basic food and nonfood items (NFI) sold in local shops and markets. This factsheet presents an overview of price ranges and medians for key foods and NFIs in the assessed areas. The cleaned data sets are available on the REACH Resource Centre and distributed to CMWG partners, as well as to the broader humanitarian community. In future rounds, the factsheet will include a Minimum Expenditure Basket (MEB), which represents the minimum culturally adjusted group of items required to support a Libyan household for one month. The prices associated with the MEB will illustrate variations in prices across assessed locations. The MEB will be included once it has been agreed upon by all partners.
Data collection for the JMMI occurs on a monthly basis, with associated factsheets and datasets published and distributed after every round. The ninth round of data collection for the JMMI was conducted between 1 and 8 February 2018, during which enumerators from 5 CMWG partners (ACTED, DRC, Mercy Corps, WFP & REACH) gathered price data for 33 basic items from 305 individual shops in 23 locations. Field staff familiar with the local market conditions identified shops representative of the general price level in their respective location. Assessed shops
ROUND 9 FIGURES 23 assessed cities 305 assessed shops 33 assessed items
Libya Cash & Markets Working Group ASSESSED LOCATIONS include supermarkets, bakeries, vegetable sellers and butchers, as well as central markets. At least four prices per assessed item were collected within each location. In line with the purpose of the JMMI, only the price of the cheapest available brand was recorded for each item. Enumerators were trained on methodology and tools by REACH. Data collection was conducted through the KoBo mobile application. Following data collection, REACH compiled and cleaned all partner data, normalising prices and cross-checking outliers.
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Northwest Libya Tripoli
ANALYSIS Libyan dinar rapidly appreciated on parallel market After the parallel market exchange rates peaked in December 2017, they fell rapidly in mid-January 2018 (see graph on page 2: Exchange rates over time). The USD/LYD exchange rate briefly fell below the 4 LYD mark, but has rebounded since. As of 4 February 2018, the USD could be obtained for 5.350 LYD on the parallel market – a rate almost 40% lower than in early January. The sudden appreciation of the LYD was most likely linked to the Central Bank of Libya's (CBL) roll out of this year’s family dollar allowance: Each Libyan family is eligible to buy 500 USD at the official exchange rate of roughly 1.350 LYD per USD.2 By early January, the CBL had reportedly paid out 2.8 billion USD to Libyan citizens claiming the allowance.3 This move increased the dollar supply in the parallel market, as many recipients exchanged their family allowances for