By Sami Zaptia.
London, 9 August 2021:
Musbah Akkari. former chairman of Jumhuriya bank, head of the Central Bank of Libya (CBL) Reserves Department and currently member of the Libyan Dinar Exchange Rate Adjustment Committee has warned that the government is giving in to pressure from parliament by proposing a huge LD 111 billion budget which will be inflationary and detrimental to the dinar.
‘‘There was a big problem with the Libyan economy that needed very painful treatment of which there was no escape until economic stability returned. And there was a specific time plan of 18 months for this treatment, and the exchange rate prescription was like dispensing a bitter medicine until it gives its effect.
Unfortunately, the Abd Alhamid Aldabaiba Government of National Unity come, and under pressure from Parliament, presented a budget of LD 111 billion. The least description of this is as if the government treated to a diabetic patient with a box of Nutella chocolate to treat the patient.
Gradual exchange rate reduction is better than salary increases
It is not possible to deal with state affairs with emotions. Yes, there are segments of state employees that need a salary increase, but after extensive study, a gradual exchange rate reduction is much better than a salary increase.
The reopening of the cheque clearance system
The opening of the clearing system also relieves many citizens whose accounts are in banks such as Wehda, Bank of Trade and Development. Amending the lending policy is better than increasing salaries. Adjusting the tax system reduces the cost of high salaries. the border.
Opening the clearing house also relieves many citizens whose accounts are in banks such as Unity, Trade and Development.
Amending loans and tax policies
Changing the loan policy is better than increasing the salaries. Adjusting the tax system to reduces the cost of high salaries.
I say if this budget was approved according to the numbers listed in it and the proposed chapters, I would be extremely pessimistic this time.
This budget, which was prepared on an emotional rather than a professional basis, will be an open path towards higher inflation rates and a further devaluation of the Libyan dinar.
It is a real danger that threatens the Libyan economy. Where are the voices that were opposed to the exchange rate? Where are they today with this danger to us?’’
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