This study investigates the economic and social impacts of monetary policy instruments, specifically the consecutive devaluations of the Libyan Dinar (LYD), on the expansion and depth of poverty in Libya from 2020 to 2026. Given the structural dependency of the Libyan rentier economy on imports for over 90% of its basic commodities, currency devaluation has triggered severe waves of imported inflation. This research employs a descriptive-analytical approach to establish the theoretical framework and tracks monetary shifts alongside an empirical-quantitative analysis. Utilizing quarterly data, an Autoregressive Distributed Lag (ARDL) bounds testing approach and an Error Correction Model (ECM) were implemented to measure the pass-through effect of official and parallel exchange rates on the Consumer Price Index (CPI) and household purchasing power. The empirical results reveal a strong, statistically significant long-run cointegrated relationship between currency devaluation and the widening poverty gap. The long-run elasticity coefficient (0.584) indicates that a 10% depreciation of the LYD increases poverty-related living costs by approximately 5.84%. Furthermore, the error correction term (\(ECT_{t-1}\)) was negative and highly significant at (-0.465), suggesting that 46.5% of short-run price deviations are corrected quarterly towards the long-run equilibrium. The study concludes that unilateral exchange rate adjustments without concurrent fiscal reforms and targeted social safety nets fail to eradicate the parallel market, while severely burdening fixed-income segments. Key recommendations emphasize adjusting the minimum wage relative to inflation indices and transitioning toward targeted direct cash transfers for vulnerable Libyan families.................... Keywords:........Libyan Dinar, Exchange Rate, Imported Inflation, Poverty Expansion, Monetary Policy, ARDL Approach