The Impact of Exchange Rate Adjustment on the Profitability of Libyan Commercial Banks: A Case Study of the National Commercial Bank (Main Branch) During the Period 2015-2020

This study dealt with the effect of adjusting the exchange rate on the profitability of Libyan commercial banks - an applied study on the National Commercial Bank during the period 2015-2020,The descriptive analytical approach was relied upon, and the statistical program (SPSS) was used to measure and analyze the study variables represented by the exchange rate adjustment as an independent variable and profitability as a dependent variable, as profitability was measured through four indicators: the rate of return on equity, the rate of return on assets, the rate of return on deposits, and the rate of return on available funds.

The results of the study showed the existence of a significant relationship between the adjustment of the exchange rate and profitability indicators represented by the return on property rights, assets, deposits and available funds.  With this in mind, the senior management of the National Commercial Bank must work to diversify its investments to enhance its profits, and the sources of obtaining hard currency must be diversified so that exchange rates are not negatively affected and to preserve the monetary and economic system in the country.