This study aims to analyze and measure the parallel market exchange rate in relation to two macroeconomic variables: the inflation rate and the economic growth rate in Libya during the period 1990–2024. The study employs an analytical and econometric approach, utilizing the ARDL boundary testing model to estimate the short- and long-term relationships between the variables and to examine cointegration. The results indicate a long-term equilibrium relationship between the study variables. The findings also demonstrate a positive impact of the parallel exchange rate on inflation in both the short and long run, confirming the hypothesis of "exchange rate transmission" to price levels. Furthermore, the results reveal a negative impact of the parallel exchange rate on economic growth due to increased import costs and uncertainty, although this impact is only evident in the short run. The study recommends unifying the exchange rate and reforming monetary policy to reduce structural distortions........... Keywords:.............Parallel exchange rate, inflation, economic growth, ARDL model.