The head of the Accounting Department at the Libyan Academy, Dr. Abu Bakr Abu Al-Qasim, wrote an article titled: “Are the Hypotheses of Untraceable Spending and Currency Printing Resurfacing?”
He stated that the Central Bank of Libya (CBL), caught between a policy of monetary flooding and restriction, stands alone in confusion over this abnormal and economically unjustified situation.
The CBL’s statement on March 12 revealed that foreign currency sales from March 1 to March 12 alone exceeded 1.7 billion dollars, evenly split between personal spending cards and annual credit allocations. This staggering figure, along with previous reports showing a demand exceeding 6 billion dollars in less than three months, raises serious concerns about the sources fueling this excessive and illogical demand.
Abu Al-Qasim questions whether currency is being printed outside the monetary system’s control—possibly even outside Libya itself—thus driving the surge in foreign currency demand.
The Central Bank now faces a dilemma: Should it continue flooding the market to stabilize the dinar’s value, or implement restrictions that could lead to a rise in foreign currency rates against the struggling Libyan dinar? The latter could have severe repercussions on inflation and the cost of living.
He warns that the situation is extremely serious and requires collective action. The CBL must not be left to fight alone in its battle to preserve the dinar’s value.
