This study aims to analyze the impact of trade openness on the real exchange rate in the Libyan economy over the period (1990–2024), using the Autoregressive Distributed Lag (ARDL) model and the Bounds Testing approach to examine the existence of a long-run relationship among the variables. The results reveal the presence of a long-run cointegration relationship between the real exchange rate and trade openness, real GDP, and inflation. The findings also indicate that trade openness has a positive and statistically significant effect on the real exchange rate in the long run, with a coefficient of (0.1282), implying that a 1% increase in trade openness leads to an improvement in the real exchange rate. In contrast, no significant long-run effects were found for real GDP and inflation. Furthermore, the error correction term was estimated at (-0.873), indicating a high speed of adjustment toward the long-run equilibrium. These results reflect the limited role of productive and inflationary factors in determining the real exchange rate in the Libyan economy, compared to the dominant role of trade-related factors associated with the rentier nature of the economy. The study concludes with policy recommendations emphasizing the need to rationalize trade openness, diversify the productive base, and enhance real exchange rate flexibility to achieve greater economic stability................. Kay words:................Real GDP, inflation, Rentier Economy, Marshall–Lerner hypothecs, Balassa–Samuelson hypothecs, Purchasing Power Parity hypothecs.