Our source at the Central Bank of Libya revealed that the Central Bank is facing significant pressure from various parties in both eastern and western Libya seeking access to funds, while failing to heed the Governor’s and Board of Directors’ official calls to curb spending and address its risks to the financial situation, particularly the exchange rate.
The source added that the Governor remains determined to submit his resignation amid the lack of clear support from state institutions for the Central Bank’s efforts, the implementation of genuine reforms, and measures to curb the depletion of state resources in hard currency through the smuggling of goods and fuel.
The source further noted that spending continues to expand across all areas without a thorough assessment reflecting the country’s actual economic circumstances. This has hindered the Central Bank’s efforts to defend the exchange rate, with the factors influencing it now falling outside the Bank’s remit.
