Al-Akkari: “The Dollar Has Already Begun to Decline, and the Central Bank’s Reserves Exceed $100 Billion with Ongoing Foreign Currency Injections”

Banker Misbah Al-Akkari stated that the rise in the dollar was temporary and that it is now steadily declining, adding that the real assessment of this drop will become clear through this week.

Al-Akkari explained that the Central Bank of Libya has found itself caught between two competing governments, each requiring expenditures including salaries, subsidies, operational expenses, and development spending. He noted that both governments are demanding funds without fully committing to collecting sovereign revenues and depositing them into the Central Bank for proper allocation, which has led to very weak sovereign revenues.

He added that revenues from taxes, customs, domestic oil sales, telecommunications, and even key sovereign oil revenues have seen a significant decline, despite improved production and a rise in global oil prices to حوالي $71 per barrel.

Al-Akkari pointed out that it is illogical for oil revenues to reach about $2 billion in February 2025, then drop to $800 million in February 2026, at a time when governments are requesting expenditures estimated at 210 billion dinars, while total revenues do not exceed 130 billion dinars.

He stressed that the Central Bank of Libya is currently trying to implement solutions within the available capabilities, noting that the treatment may sometimes be painful but aims to avoid a shock that some may not anticipate, and that the results will take time to appear.

He added that Libyan citizens booked $668 million through the personal purposes foreign currency system last week, and their cards will be loaded starting tomorrow, God willing. He also noted that all approved letters of credit that have been reviewed are being continuously executed, meaning large amounts of foreign currency are being injected into the market to increase supply and meet demand.

Al-Akkari stated that more than 330,000 Libyan citizens have registered in the system, emphasizing that reforms are ongoing but are being carried out by only one party in the country—the Central Bank of Libya—while questioning the role of other stakeholders in the reform and oversight process.

He said that the Central Bank of Libya holds foreign currency assets exceeding $100 billion, while the total foreign assets of the Libyan state surpass $150 billion. He questioned how a country with such wealth, resources, and large oil reserves could resort to borrowing from the World Bank, describing it as one of the most controversial issues among Libyans.

He added that these reserves cannot be recklessly used during a period of division or spent on consumption, stressing that Libya has sufficient resources to move toward stability, achieve urban development, and ensure a decent standard of living for its citizens—provided there is genuine political will to build the state, end divisions, unify governments, properly utilize resources, and hold corrupt individuals accountable.