The dinar (Arabic: دينار (Arabic pronunciation: [diːˈnɑːr]); sign: LD in Latin, ل.د in Arabic; code: LYD) is the official currency of Libya. The dinar is divided into 1,000 dirhams (درهم). It is issued by the Central Bank of Libya, which also supervises the banking system and regulates credit.

It was introduced in September 1971 and replaced the pound at par. The currency was pegged to the special drawing rights at a rate of 2.80 SDRs per dinar.

In 1972, the Libyan Arab Foreign Bank was established to deal with overseas investment.

In February 1973, the dinar was pegged to the US dollar at a rate of 0.29679 dinar per dollar (LD 1 = US$3.37), which was maintained until 1986. The peg was switched to the special drawing rights on 18 March 1986, with 1 dinar = 2.80 SDRs. On 1 May 1986, the dinar was allowed to trade in a 7.5% range of 2.80 SDRs. This range was expanded several times.

The currency started to devalue gradually relative to the US dollar in the mid-1990s, reaching a value of US$1.55 in 2001. The dinar was devalued by 50% to US$0.77 in 2002.

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.

On 3 January 2021, the dinar was devalued to US$1 = LD 4.48 for all transactions following exchange rate unification, closing the gap between the official and black market exchange rates.

In April 2025, the Libyan dinar is facing an evaluation, results of the political situation in Libya.