Nasiya Writes: The Liquidity Crisis… A Suffocating Citizen and A Staggering Economy

Dr. Abdussalam Abdullah Nasiya wrote:

Since the withdrawal of the new 20- and 5-dinar banknote denominations, Libya has been experiencing a new wave of financial suffocation. Scenes of long queues in front of banks and ATMs have resurfaced, amid the absence of any guarantee of obtaining cash. At the same time, as the exchange rate continues to rise in the parallel market without clear restraints, citizens’ purchasing power erodes day after day, deepening the living crisis in an unprecedented manner.

With unchecked consumer spending and the accumulation of burdens caused by poor economic policies, the citizen finds himself the weakest link in the chain of financial decisions, while the responsible authorities evade their duties. Concerns are growing that the country may be heading toward another increase in the exchange rate, in light of expanding public spending and the continuation of unregulated import policies.

Although the Central Bank of Libya is one of the key sovereign institutions entrusted with managing public funds, safeguarding monetary stability, and ensuring the soundness of the banking system, these responsibilities appear threatened amid ongoing political conflicts. The Bank—meant to operate independently of political polarization—has, on many occasions, become part of the tense political scene, weakening its ability to make professional decisions free from narrow calculations.

The administration of the Central Bank needs leadership with scientific competence and technical expertise, working under a cohesive vision that does not subject monetary decisions to considerations of loyalty or power balances. Without sound leadership, the most vital financial institution in the country will remain hostage to division, exposing the national economy to further fragility.

The Libyan economy does not lack solutions as much as it lacks political will and good governance. The possible reforms—whether in rationalizing spending, unifying monetary policy, or correcting distortions in the exchange market—are implementable but require courageous decisions and transparent management. Conversely, continuing the current approach will leave citizens directly facing the consequences of division and paying the price for any financial or monetary instability.

In conclusion, leading the Central Bank at this critical moment is not a position for maneuvering or distributing influence; it is a true test of patriotism and competence. The choices are clear: either an administration capable of protecting the fragile trust in financial institutions, or a continuation of the gradual collapse that worsens citizens’ daily suffering.