22 Hrs
Source:
عين ليبيا
Libya Central Bank Manages Policy Amid Crises
The article discusses the book "The Central Bank of Libya: Managing Monetary Policy During the Crisis," which documents the evolution of monetary policies and the Central Bank of Libya during a period of political division and successive crises since 2014. The book highlights the impact of the division within the banking system, particularly the disintegration of the Central Bank in the East and Tripoli, and the consequences of this on liquidity, exchange rates, and foreign reserves. It also emphasizes the importance of effectively managing exchange rates and refutes the idea that reserves alone are sufficient to maintain monetary stability, asserting that outcomes include currency stability, inflation control, banking system functions, and citizens' access to funds. The article underscores the significance of major decisions such as the unification of the exchange rate in 2021 and analyzes the failure of policies in 2022 and 2023 to curb fiscal expansion and the liquidity of the dinar, which led to an increasing exchange rate gap and the imposition of fees on foreign purchases in 2024. It stresses the importance of institutional and banking reforms, enhancing governance, and calls for an objective review of monetary policies that balance reserve management with economic stability amid Libya’s political and economic challenges.
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