New york: The absence of a unified budget and uncoordinated public spending have caused the decline in the value of the Libyan dinar. The UN envoy to Libya, Hanna Tetteh, warned that Libya's economy is at a critical juncture, and poverty rates are expected to rise in the coming period if the political crisis plaguing the country continues.

According to Libyan News Agency, in her briefing to the UN Security Council, Tetteh stated that the Libyan economy is at a dangerous crossroads. The currency is depreciating, prices are soaring, there are fuel shortages, and public discontent is growing due to deteriorating living conditions.

Tetteh attributed the decline in the value of the Libyan dinar to the absence of a unified budget, fragmented public spending due to parallel institutions, and declining oil revenues. These factors have put pressure on Libya's foreign currency reserves.

The UN envoy said that independent estimates indicate that more than 30% of the population lives below the poverty line. She expects these rates to increase if political instability and government division persist.