The Central Bank of Libya on Wednesday changed the local dinar's exchange rate against U.S. dollar, in an attempt to introduce economic reforms in the country.

"The Board of Directors of the Bank held the first meeting of the year 2020 to discuss a report made about options of changing the dinar's exchange rate. The new exchange rate is 4.48 dinar against 1 U.S. dollar," the bank said in a statement.

"This rate will enter into force on January 3, 2021 and will be available for all governmental, commercial and personal uses," the statement said.

The previous exchange rate of the Libyan dinar was around 1.4 dinar against 1 U.S. dollars.

Due to years of armed conflict and political instability, Libyan economy has been suffering and local banks severely lack liquidity.