Central Bank of Libya Official Calls for Urgent Institutional Unification

Central Bank unification is a national demand that everyone should call for: CBL official

Sami Zaptia Libya Herald Chief Editor

By Sami Zaptia.

Tripoli, 6 November 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 warned that "the unification of the central bank is a national demand that everyone should call for," noting the need for "the government to reconsider the exaggerated consumer spending."

Posting on his social media site on Thursday, Akkari said there is a need to “revitalize the Central Bank’s board of directors and the exchange rate committee to consider the possibility of adjusting the exchange rate,” expecting this to lead to a decrease in the prices of goods and services. The devaluation of the Libyan dinar has shot prices sky-high, especially for goods imported with hard currency. The public complain that their incomes cannot keep up with prices after the devaluation.

Akkari pointed out that the exchange rate of the dollar in the parallel (black) market is 4.9 dinars to the dollar, down by 25% in cash, and 5.05 dinars for cheques, wondering, "How can the dollar exchange rates decrease with these numbers and the prices of goods rise."

He also stated that the reason for the current rise in the prices of goods and services is the increase in their prices abroad (imported inflation), in addition to the high cost of transportation.

Akkari's post is seen as a message and pressure on the current CBL Governor who is seen as a conservative when it comes to adjusting the dinar exchange rate. Akkari wants to strengthen the dinar gradually from its current rate to counter inflation.

Size of huge LD 111 2020 budget due to parliament pressure on government – will lead to high inflation and further dinar devaluation: member of CBL Committee | (libyaherald.com)

LD 100 bn available locally to finance economy: Gumhouria Bank Chairman Musbah Akkari | (libyaherald.com)

Libya dinar continues to gain strength against hard currencies in black-market – remaining below LD 5 per dollar over last week: Report and analysis | (libyaherald.com)

e-payments transactions top LD 1.1 bn in Q1 of 2021 – but cash is still king in Libya | (libyaherald.com)

Prices will decrease by 35-45 percent because of dinar devaluation: CBL expert | (libyaherald.com)

End of Libya’s cash liquidity problem? | (libyaherald.com)

Foreign exchange sales reached US$ 3 billion after new rate – helping solve liquidity problem | (libyaherald.com)

Cash availability and cash withdrawal limits to rise within two weeks: CBL official | (libyaherald.com)

UNSMIL congratulates CBL on unification of exchange rate | (libyaherald.com)

At Geneva Libyan economy reform meeting, UNSMIL calls for critical decisions within two days | (libyaherald.com)

The Maetig-Hafter proposal to resume oil exports: Analysis | (libyaherald.com)

Hafter announces he will permit restart of oil production and exports, but fails to withdraw forces and mercenaries from oilfields | (libyaherald.com)