TRIPOLI, Libya—Civil war, more than two months of bombardment from the North Atlantic Treaty Organization and international sanctions have battered Libya's economy.

But in one corner of Tripoli's labyrinthine covered bazaar, at an intersection known to merchants as Libya's Wall Street, business is booming. Currency and gold traders, who have operated from a dusty crossroad at the al-Mushir Souk for four decades, say activity has surged during the war as Libyans seeking to preserve assets buy foreign cash and precious metals...