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Source:
عين ليبيا
Central Bank Uses Absolute Deposit Certificates
The article discusses the use of the Central Bank of Libya's deposit certificates as a modern tool for managing the country's excess liquidity. The aim is to reduce inflation, support monetary stability, and stabilize the foreign exchange market. Experts clarified that deposit certificates help temporarily withdraw liquidity from the market and offer a flexible investment option for commercial banks to utilize surplus funds. They also contribute to easing inflationary pressures and aid in stabilizing the exchange rate. However, they warned that the effectiveness of this tool depends on coordination with fiscal policies. Over-reliance on deposit certificates could lead to a decline in funding the real sector. Additionally, maintaining them for extended periods will not address the fundamental causes of Libya's economic imbalances, which include excessive public spending, low domestic production, and heavy dependence on oil. Therefore, while deposit certificates are an important instrument, they must be accompanied by comprehensive economic reforms to achieve sustainable economic stability.
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