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The libyan dinar is the currency of Libya , Its ISO 4217 code is "LYD". The dinar is subdivided into 1000 dirhams. It was introduced in 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. In 1971, banknotes were introduced in denominations of 0.25, 0.5, 1, 5 and 10 dinars. 20 dinar notes were added in 2002. On 27 August 2008, the Central Bank of Libya announced a new 50 dinar note and that was scheduled to enter circulation on 31 August 2008.

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