Libyan economy faces new challenges
The article discusses the economic situation in Libya, addressing challenges related to exchange rates, public spending, and financial data transparency. Businessman Hosni Bay emphasized that political stability is not a prerequisite for making economic decisions, and delaying reforms only increases the burdens on citizens. He stressed the importance of addressing the gap between the official exchange rate and the black market, which leads to speculation and increased demand for foreign currencies. He explained that the exchange rate issue is not the root problem but a consequence of increased public spending and financing deficits through the creation of new money, which exacerbates inflation and puts pressure on the national currency. He called for controlling public expenditure and reforming the foreign currency sale mechanism and its transparency, highlighting the importance of reissuing monthly reports from the Central Bank of Libya. Mukhtar Al-Jadid revealed irregularities in fuel expenses amounting to over a billion dollars, warning that the absence of accurate data worsens the crisis and hampers resource management. The issues of exchange rate stability and transparency remain critical, directly impacting the purchasing power of the dinar and citizens’ livelihoods, with a heavy reliance on oil revenues, which continue to be the main driver of the Libyan economy.
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