The Libyan dirham is the official currency of Libya, also known as Libyan dinar. However, some people may also use synonyms such as LYD (currency code), Libyan pound, or Libyan dollar. The Libyan dinar is divided into 1000 dirhams. Although the currency has experienced fluctuation in value due to political and economic instability, it remains the sole legal tender in Libya. Some businesses may also refer to the Libyan dirham as the Libyan rial, as it was previously known before a 1971 currency reform. Regardless of what someone calls it, the Libyan dirham is an essential aspect of the economy.