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Author: Amira Cherni

With Documents: Violations by the Minister of Education in the Government of National Unity Lead to Sentencing and Imprisonment Orders

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The Public Prosecution announced this evening that the Tripoli Court of Appeal has convicted the Minister of Education in the Government of National Unity, sentencing him to three years and six months in prison, along with a fine of 1,000 LYD. Additionally, he has been stripped of his civil rights for the duration of the sentence and for one year after its completion. The conviction is due to violations of the principle of equality and the practice of favoritism and nepotism in managing the contracting process for printing and supplying school textbooks.

Revealing Administrative and Legal Violations

Our source had previously published an exclusive document—a letter from the Director of Inspection and Follow-up at the Prime Minister’s Office to the Director of the Office of the Minister of State for Prime Ministerial Affairs. The letter detailed administrative and legal violations within the Ministry of Education, specifically those committed by Minister Musa Al-Magariaf.

The document highlighted the unauthorized disbursement of 2.8 million LYD, deducted from the education budget of municipalities in 2022 and transferred to escrow accounts without providing the required supporting documents. Furthermore, the procurement committee’s meeting minutes were altered multiple times without approval from the Administration and Financial Affairs Department, and payments were processed while the department director was on emergency leave.

The report also revealed that the Ministry’s Tender Committee was dissolved before the completion of the 2024/2025 textbook printing and supply project. Additionally, the digital procurement platform had not been activated since January 1, 2023, with procurement procedures being handled outside the system, except for the textbook project, which was only listed due to pressure from the Tender Committee chairman. Moreover, financial allocations were repeatedly directed toward specific companies and entities.

Irregularities in Procurement and Asset Management

The document also exposed irregularities in the allocation of ministry-owned vehicles. A Hyundai Santa Fe (white, plate number 5/2099957), previously flagged in the 2022 Audit Bureau report as stolen, was allocated to the minister’s brother, Saleh Muhammad Al-Magariaf. Similarly, a Hyundai Creta (gray, plate number 5/2096696) was assigned to an individual with no affiliation with the Ministry, Muhammad Faraj Milad Al-Shamli.

Additionally, individuals with no official ties to the Ministry were sent on international missions, including Muhammad Faraj Milad Al-Shamli. The minister’s brother, Saleh Al-Magariaf, was appointed as Director of the International Cooperation Office despite being absent for months without leave or delegation of responsibilities. Nonetheless, he received full compensation, including housing allowances.

Furthermore, legal and international cooperation office decisions were deliberately withheld from the Ministry’s electronic system, making it impossible to track official correspondence. The Procurement Committee consistently engaged with select companies, awarding them contracts repeatedly.

Failure to Complete School Furniture Procurement and Budget Mismanagement

Despite finalizing the procurement process for school desks in August 2023, deliveries have not been made, prompting the Prime Minister’s intervention. Additionally, the disbursement of municipal education budgets was delayed until August 2024, despite funds being available since April 2024.

A sum of 12.5 million LYD from previous years was reallocated, benefiting the same companies repeatedly engaged by the Procurement Committee. The minister’s advisor, Abdel Salam Ahmed Al-Saghir, who was previously detained on public fund embezzlement charges, was repeatedly assigned to international missions and sensitive committees.

Alert for Euro Holders: Europe Cancels and Bans the Circulation of Several Denominations – Here’s Why

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The Italian newspaper “MNGRNEWS” reported today, Saturday, that the decision to withdraw certain banknotes from circulation is linked to various reasons, primarily combating tax evasion and all activities considered illegal. This is undoubtedly a significant change, as it affects everyone who will need to adapt to a new type of economy.

Which Banknotes Will Be Phased Out?

The newspaper confirmed that one of the first banknotes long known to be discontinued is the €500 bill. This denomination ceased production six years ago and will be gradually removed from circulation by the end of 2025. This decision was made specifically because the €500 note was a primary tool for criminal activities. Additionally, the move aims to encourage the use of smaller denominations and digital payment methods.

The report also mentioned that another banknote set to be phased out is the €200 bill. While it is currently used in high-value transactions, such payments can now be made digitally. This transition will make transactions more traceable and reduce money laundering activities.

Furthermore, the €100 bill—despite being less commonly used for illegal activities—is also set to disappear. This move is part of a broader cost-cutting strategy. By eliminating this banknote, authorities aim to promote a more secure, transparent, and digital economy.

How to Handle These Banknotes?

According to the newspaper, if you still hold €100, €200, or €500 banknotes, which will be withdrawn by the end of 2025, you can exchange them before they lose their value. To do so, simply visit central banks or accredited financial institutions.

Another option is to transition to digital payment methods. By doing so, you not only adapt to this significant economic shift but also safeguard your money by using credit or debit cards or electronic wallets, ensuring greater security in financial transactions.

Summary & Conclusion

In summary, the withdrawal of these banknotes is entirely driven by security, traceability, and cost reduction measures. The affected denominations—€100, €200, and €500—will be removed from circulation by the end of 2025. Replacing these banknotes and supporting digital payment methods are crucial steps toward this transformation.

The report concludes that saying goodbye to high-value banknotes marks a critical economic shift. Embracing digital transactions enhances security and transparency, making it essential to exchange these banknotes and prepare for the new financial landscape.

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Independent: Libyan Patients’ Debts to Tunisian Clinics Exceed $112 Million

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Today, Saturday, Independent Arabia published a report revealing that Tunisia’s private healthcare sector is awaiting the resolution of longstanding outstanding debts with the Libyan side. These debts, which have remained unsettled for over 13 years, stem from the treatment of Libyan patients and wounded individuals who sought medical care in Tunisian clinics following Libya’s security crises and conflicts after the fall of the Gaddafi regime, as well as the influx of patients in subsequent years.

The newspaper highlighted that Tunisian clinics have been unable to recover their dues despite repeated promises from the Libyan side. The latest commitment came when a Libyan delegation, led by Ahmed Militan, head of the Authority for the Support and Development of Medical Services, reaffirmed to Tunisian Health Minister Mustafa Al-Farjani their pledge to resolve the issue of unpaid debts to Tunisian healthcare institutions. Meanwhile, Basheera Rahim, Director General of Health Services Export and Investment Support at the Tunisian Ministry of Health, confirmed that Libyan officials expressed readiness to settle the outstanding debts. An agreement was reached to close this file and settle the payments as soon as possible, with a joint task force—including representatives from the health ministries of both countries—set to be formed in the coming days to address these challenges.

60 Affected Clinics

Abu Bakr Zakhama, head of Tunisia’s National Chamber of Private Clinics, an independent body, revealed that Libya owes over $112 million in unpaid debts to 60 private Tunisian clinics that have treated Libyan patients.

He explained that the Libyan side has struggled to pay off these accumulated debts, as successive governments have failed to fulfill their promises to resolve them since 2011. He emphasized that these outstanding payments pose a significant financial burden on Tunisia’s healthcare sector. Despite multiple commitments, the issue remains unresolved more than a decade later. This has severely impacted the cash flow of private clinics, limiting their ability to provide high-quality services, especially since Libyans make up about 70% of foreign patients receiving treatment in Tunisia.

Zakhama also noted that the Tunisian healthcare sector provides approximately 1.5 million medical consultations annually for Libyan patients, making it crucial to address the issue swiftly to ensure service continuity and quality. Although an audit committee was formed in 2018 to assess the debts, it concluded its work in 2023 without achieving a resolution.

He added that most Libyan patients bear the full cost of treatment at Tunisian private clinics. These clinics also accept cases covered by Libyan institutions that provide comprehensive health insurance, which is supposed to handle payments later.

Disputed Invoices

According to the report, Tunisian clinic owners and representatives of healthcare institutions described the issue of unpaid Libyan patient bills as “complicated.” In an interview with Independent Arabia, Sahbi Ben Ayad, owner of a private clinic, explained that Tunisian healthcare institutions had to navigate dealings with multiple Libyan committees representing patients, especially in the absence of a unified government before 2017. Each committee was approached separately to negotiate invoices and payment, in addition to handling medical coverage letters from the Libyan consulate and embassy.

Further complicating matters, insurance companies that were supposed to settle bills were dealt with individually, as were intermediary firms assigned by the Libyan side to act as liaisons between clinics and the embassy.

Ben Ayad noted that aside from a few reputable insurance companies that honored their commitments, most other parties failed to pay. This was especially the case for the treatment of Libyan patients and wounded individuals between 2011 and 2017.

He added that the situation improved somewhat after 2017, particularly in 2020, due to Libya’s relative political stability and the ability to coordinate with the Government of National Unity. However, some debts remain unsettled, particularly those linked to intermediary firms acting between the embassy, consulate, clinics, and Libyan insurance companies.

Ben Ayad estimated that total debts had surpassed 400 million Tunisian dinars (around $131.2 million), based on the exchange rate at the time (1.6 dinars per US dollar). Currently, the exchange rate exceeds three dinars per dollar.

Meanwhile, Tarek Obeid, a representative of another private clinic, said he is still awaiting payment for invoices processed under the same system, whether during the committee period or afterward, under the Government of National Unity. He explained that clinics received patients under Libyan coverage schemes, but they only managed to collect a small fraction of their dues. Although insurance companies and intermediaries initially cooperated, they later reneged on their commitments, leaving Tunisian institutions with nothing but unfulfilled promises.

Obeid mentioned that some clinics have resorted to lodging complaints with the Tunisian judiciary due to the financial strain, particularly smaller clinics that have suffered from reduced income and stalled investments. The ongoing treatment of Libyan patients has further complicated matters.

Tunisia has over 120 private clinics, with Libyan patients making up the majority of foreign visitors, followed by Algerians and Mauritanians.

Despite concerns over unpaid debts, Tunisia’s private clinics association has previously denied rumors of refusing to admit Libyan patients, reaffirming its commitment to providing services without discrimination.

Africa Intelligence: New Trade Route Between Libya and Syria Opens

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The French intelligence website Africa Intelligence reported on Thursday that Farwa Shipping Company is launching new shipping routes to Syria.

The report confirmed that the Libyan company Farwa Shipping is preparing to open two new routes to the Syrian port of Latakia, marking the beginning of new opportunities in the Syrian market, according to the website.

Exclusive: Tripoli Court of Appeal Rules on the Case of Libyan-Granted Facilities to CKG from Sahara Bank, Convicts Several Officials

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Our source has exclusively obtained the ruling of the Tripoli Court of Appeal regarding the case of facilities granted by the Libyan side to CKG from Sahara Bank, convicting Abdulatif Abdelhafiz Al-Keeb, Abdulrazzaq Ali Khalifa Al-Hamidi, and Ali Mohammed Mansour Al-Margani.

The court sentenced them to one year in prison and ordered them to return the embezzled amount of 300.8 million dinars. Meanwhile, the court acquitted Abdelhafiz Ali Abdelhafiz, Abdulrazzaq Mohammed Al-Mabrouk Al-Tweel, Mustafa Mohammed Saleh, and Jumaa Faraj Ali Haman.

Hbarat Explains the Rising Demand for Foreign Currency and Its Negative Economic Impact

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Economic affairs analyst Noureddin Hbarat provided an important clarification regarding the growing and alarming demand for foreign currency for all purposes, particularly trade credits and personal spending cards.

According to a statement issued today by the Central Bank of Libya, the total foreign currency demand from March 1 to today reached 1.696 billion dollars—an average of 141 million dollars per day, surpassing Libya’s daily oil revenue.

This is a highly concerning indicator with severe economic consequences, posing risks to future generations. The government and relevant authorities must urgently investigate its causes, justifications, and repercussions while proposing immediate solutions before the situation worsens and spirals out of control.

If this trend continues, it will worsen the balance of payments deficit and deplete foreign currency reserves, especially given the ongoing rise in government spending by both rival administrations, the growing import bill, falling global oil prices, and increasing fuel and goods smuggling to neighboring countries. These factors will negatively impact exchange rates, inflation, unemployment, and economic growth, further worsening citizens’ hardships.

To address this crisis, both governments must urgently implement corrective measures, including controlling and rationalizing government spending, enhancing revenue collection from both oil and non-oil sources, and preventing further debt accumulation by adopting a unified national budget. They must also restrict imports to essential goods such as food, medicine, raw materials, and production inputs, while strengthening border controls to combat smuggling, which drains significant foreign currency reserves.

Additionally, the Central Bank must enforce stricter regulations on foreign currency usage for personal purposes to protect reserves and implement monetary policy tools to curb excessive money supply growth.

However, the pressing question remains: Can these measures be effectively implemented in a country divided for nearly a decade, governed by two rival parliaments and administrations vying for legitimacy?

Abu Al-Qasim: “Are the Hypotheses of Untraceable Spending and Currency Printing Resurfacing?”

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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.

Exclusive: Ruvinetti Reveals to Sada the Truth About Migrant Settlement and Those Behind It

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Italian strategic expert Daniele Ruvinetti told our source on Wednesday that irregular migration in Libya is a shared concern for Italy, which has been actively involved in addressing the issue, including through partnerships with Libya.

Ruvinetti emphasized that the problem is linked to Libya’s internal instability and the absence of a unified government with institutional security structures. Additionally, various internal actors, including armed groups, exploit these dynamics for economic and political gains.

He further stated that some of these migration dynamics are influenced by external actors aiming to carry out hybrid operations, according to his assessment.

Referring to Smuggling and Speculation… Former Finance Minister Bumtari Criticizes Central Bank Measures, Describing Them as an Official Declaration of Surrender to the Black Market System

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Former Minister of Finance in the Government of National Accord, Faraj Bumtari, wrote an article titled: A Technical Analysis of the Central Bank’s Revenue and Expenditure Report from January 1 to February 28, 2025.

Although the primary role of the central bank is to protect the monetary and economic stability of the state and prevent it from becoming a tool for financial chaos, the recent report issued by the Central Bank of Libya on revenues and expenditures raises fundamental questions about its policies, particularly concerning foreign exchange management, its stance on the black market, and the potential economic impacts on Libya.

The central bank stated in its report that expenditures were solely for salaries. However, an analysis of the data reveals government spending in foreign currencies on items unrelated to salaries. This raises questions about the source of funding for these transactions, given the lack of transparency regarding how the government covers these expenses.

Regarding salaries, the government has been reclassifying certain salaries from Chapter One to Chapters Three and Four since 2021, concealing their actual value, which exceeds 8.4 billion dinars per month rather than the 5.9 billion dinars reported under Chapter One. This does not include the salaries of the National Oil Corporation, whose real figure remains unknown since being reclassified under Chapter Three. This total surpasses 100 billion dinars annually, approximately 20 billion dollars in salaries alone at the current exchange rate. Considering Libya’s oil revenues for 2024 amounted to 18 billion dollars, according to the Central Bank of Libya’s reports, they would not even be sufficient to cover salaries, let alone other essential expenditures and subsidies.

These figures reflect the continued inflation of Chapter One, which stood at 1.8 billion dinars per month until March 2021, marking an increase of 6.6 billion dinars per month in less than four years. This is a worrying indicator historically linked to corruption cases.

The central bank’s data also reveal that the largest share of foreign exchange was allocated for personal use, totaling approximately 3 billion dollars distributed across 750,000 cards, equivalent to around 17 billion dinars—an amount that could cover two full months of state salaries. Notably, January salaries had only been disbursed when these cards were funded. These figures contradict the prevailing economic stagnation and lack of developmental spending, raising concerns about cash flows and the potential exploitation of these operations for money laundering and currency speculation.

When letters of credit for importing goods and services amount to 2.3 billion dollars, compared to 3 billion dollars for personal purposes, it highlights the severe distortions in monetary policies. These ratios reflect a critical economic crisis that directly affects citizens, accelerating the depletion of foreign currency reserves and potentially forcing the country into external borrowing. This, in turn, leads to declining purchasing power and rising prices in an already unstable economy.

Some key figures were absent from the report, particularly regarding fuel subsidies, as these are deducted directly by the National Oil Corporation. The only clearly stated figure is 8.7 billion dollars allocated for fuel for the General Electricity Company, marking an 87 percent increase in 2023, according to the UN Panel of Experts’ report issued on December 6, 2024. Consequently, the total required to fund salaries and electricity plants alone reached 28.7 billion dollars.

Amid these alarming figures, rather than taking strict measures to curb speculation on the dollar, the central bank made a surprising decision to expand the network of exchange offices by granting official licenses to 135 companies and bureaus. This decision cannot be separated from the continuous increase in foreign currency spending, as it has become evident that a significant portion of cash flows bypasses the formal banking system and is instead directed through the so-called “legalized” parallel market, further complicating the economic crisis.

This move was not a monetary reform, as some may claim, but rather an official declaration of the central bank’s surrender to the black market system, effectively legalizing and providing it with a regulatory cover.

The continuation of such monetary policies threatens to further depreciate the Libyan dinar, deplete foreign currency reserves, increase inflation, and raise the cost of living, while also exacerbating corruption within the public sector. The real question, therefore, is not just about Libya’s economic future but about the state’s ability to reclaim control over its financial system.

Addressing this crisis cannot be achieved by expanding the black market or legitimizing financial chaos. Instead, bold decisions are needed to reform the banking system, restructure economic priorities, control public spending, and impose strict oversight on suspicious transactions. Will the central bank fulfill its true role in protecting Libya’s economy, or will it merely become an official tool serving the interests of a privileged few at the expense of the people?

The questions remain open, and the answers will determine the fate of Libya’s economy in the coming years.

Exclusive: New Cash Shipment Arrives at the Central Bank of Libya from Abroad

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The Central Bank of Libya exclusively revealed to our source that a new cash shipment arrived this evening from abroad. The bank is currently working on transferring the funds to its vaults in preparation for distribution and supplying the vaults of commercial bank branches across all Libyan cities.

The Central Bank of Libya will continue receiving and dispatching cash shipments as needed to meet citizens’ demands. This is part of the bank’s plan to resolve the cash shortage crisis, following the directives of Governor Nagy Mohammed Issa and his deputy.

Great Eastern Italy: Libya Strongly Returns as Italy’s Main Supplier – Details Inside

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The Italian insurance and financial services company, Great Eastern, reported on Monday that Libya has regained its position as Italy’s primary oil supplier, covering 21.5% of crude oil imports. This marks a significant comeback 14 years after the outbreak of the first civil war.

Great Eastern emphasized that this resurgence contrasts sharply with the collapse recorded in 2011, shedding light on the new energy geography of Italy, which has been reshaped following Russia’s invasion of Ukraine.

The company noted that since 2022, the European Union has accelerated efforts to reduce dependency on Moscow and diversify its supply sources. For Italy, a country lacking significant natural resources and heavily reliant on imports, finding new energy balances has become crucial. Alongside Libya, the entire North African region is gaining strategic importance, particularly in light of the “Mattei Plan,” which aims to strengthen relations with energy-rich nations.

However, the company also highlighted that Libya plays a much smaller role in gas supply, accounting for only 1.4 billion cubic meters (2.3% of the total), according to its data.

Exclusive: Irregularities in the Ministry of Education, Including Unlawful Expenditures, Vehicle Allocations, and Recycling of 12.5 Million

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Our source has obtained a letter from the Director of the Inspection and Follow-up Department at the Prime Minister’s Office in the Government of National Unity to the Office of the Minister of State for the Prime Minister’s Affairs regarding administrative and legal violations within the Ministry of Education and Minister Mousa Al-Megreif.

The letter highlighted several financial and administrative violations, including the allocation of 2.8 million dinars, deducted from the budgets of municipal education offices for 2022 and transferred to trust and deposit accounts without the necessary documentation. The purchasing committee’s report for 2022 was altered multiple times without approval from the administrative and financial affairs department. Payments were also processed while the department director was on an emergency leave.

Additionally, the ministry’s tender committee was dissolved before completing the printing and supply project for school textbooks for the 2024/2025 academic year. The procurement platform had been inactive since January 1, 2023, with procurement decisions being made without its involvement, except for the textbook project, which was submitted under pressure from the tender committee chairman. Several financial uplift decisions were issued to various companies and entities without proper procedures.

The letter also exposed the unlawful allocation of ministry-owned vehicles, including a white Hyundai Santa Fe (license plate 5/2099957) given to the minister’s brother, Saleh Mohammed Al-Megreif, despite being listed in the 2022 Audit Bureau report as a stolen vehicle. Another Hyundai Creta (gray, license plate 5/2096696) was allocated to Mohammed Faraj Milad Al-Shamli, who has no affiliation with the ministry.

Furthermore, individuals with no official ties to the ministry were sent on official foreign missions to attend international conferences, including Mohammed Faraj Milad Al-Shamli. The minister’s brother was also appointed as Director of the International Cooperation Office despite being absent for months without authorized leave or a designated replacement, while still receiving full benefits, including housing allowances.

The letter also mentioned deliberate obstruction of legal and international cooperation office decisions within the electronic system, making it impossible to track correspondence, and a preference for specific companies in procurement deals.

Other violations included failure to complete the procurement of school desks, despite the awarding process concluding in August 2023, and delays in disbursing municipal education budgets until August 2024, even though funds were available since April 2024.

The ministry also recycled 12.5 million dinars from previous years and repeatedly assigned the same companies for procurement contracts. The minister’s advisor, Abdel-Salam Ahmed Al-Saghir, was also frequently sent on official foreign missions and assigned to sensitive committees despite being detained in a public funds embezzlement case.

Exclusive: Central Bank Sends 60 Million to Its Benghazi Branch

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The Central Bank of Libya has exclusively revealed to our source that it has dispatched a new cash shipment today from Mitiga Airport in Tripoli to Benina Airport in Benghazi. The shipment, designated for the bank’s Benghazi branch, carries a total of 60 million dinars.

The Central Bank will continue sending cash shipments regularly until all Libyan cities receive the necessary liquidity, in accordance with its planned strategy and under the directives of Governor Naji Mohammed Issa and his deputy.

Abu Mahara Writes: “Central Bank Data on Revenue and Public Expenditure (Incomplete Transparency)”

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Lawyer Ahmed Ali Abu Mahara wrote an article titled: Central Bank Data on Revenue and Public Expenditure (Incomplete Transparency):

There is no doubt that the data issued by the Central Bank of Libya on state revenues and expenditures is an important indicator for understanding the country’s financial situation. Through these reports, one can assess the total revenues generated from various sources such as oil, gas, and taxes, as well as how these revenues are distributed across different sectors. Additionally, expenditure data provides a clear picture of how the government manages its financial resources.

However, when examining the overall legal framework, it becomes evident that revenue collection and expenditure management fall exclusively under the jurisdiction of the Ministry of Finance. This ministry oversees the state’s revenues and expenditures, monitors its income, and manages all government accounts with the Central Bank to ensure proper deposit and spending procedures. This raises a critical question: Who is legally authorized to issue reports on revenue and expenditure data? Is it the Central Bank or the Ministry of Finance? This article aims to clarify the answer.

Libya’s public revenues vary in nature, including oil revenues, taxes, and fees. Oil revenues are the primary source of funding for public expenditures. These revenues are collected through agencies and institutions responsible for managing state income, which is then deposited into the Ministry of Finance’s accounts at the Central Bank of Libya.

As for public expenditures, they involve financial disbursements that the state owes to rightful recipients, such as salaries and similar payments. These expenditures occur through authorizations issued by the Ministry of Finance to the Central Bank, instructing it to release the required funds. All these transactions follow the financial regulations governing such operations.

According to Libya’s legal framework, the Central Bank acts as an agent of the government in all financial transactions. Public revenues are deposited in the Central Bank under the name of the public treasury and placed in the Ministry of Finance’s accounts. These accounts are then used to settle the government’s financial obligations. This process is legally known as treasury operations. The public treasury serves as the link between revenue collection and expenditure, where all types of state income are accumulated, and from which the necessary funds are disbursed based on spending orders issued by the Ministry of Finance to the Central Bank, which then executes the payments.

This legal requirement makes it clear that the Ministry of Finance is the entity responsible for issuing financial reports since it has precise knowledge of both the amounts spent and the revenues collected in the state treasury.

By law, the Ministry of Finance is mandated to produce financial reports compiled from the aggregated reports it receives from various institutions. Article 25 of the Budget, Accounts, and Warehouses Regulations states:

“Assistant financial controllers must submit a monthly report to the financial controller, approved by the head of the respective authority, detailing the revenues collected and expenditures incurred…”

“The financial controller must prepare a monthly report on the ministry’s operations and submit it to the Ministry of Finance after obtaining approval from the Deputy Minister, no later than the end of the following month.”

If the Ministry of Finance does not produce any financial reports—its last published report on its website dates back to 2022—and there are no accounting reconciliations between the Ministry of Finance and the Central Bank of Libya to verify the actual figures for revenue and expenditure, this lack of reconciliation results in discrepancies between the Central Bank’s data and the records held by revenue-generating institutions such as the National Oil Corporation, the Tax Authority, and the Customs Authority.

Such reconciliation between the Ministry of Finance and the Central Bank is crucial for understanding the country’s true financial situation. Without it, the Central Bank’s unilateral release of these reports raises serious questions about the accuracy of the figures presented.

Exclusive: Husni Bey Explains to Sada the Reasons Behind the Surge in Foreign Currency Demand and Deficit … and Proposes Solutions

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Libyan businessman Husni Bey stated exclusively to our source that when the Central Bank of Libya’s monthly report for February was released, detailing government revenue and expenditure in Libyan dinars, it showed a surplus in the general budget—even when adding February’s salaries, estimated at 5 billion dinars, which were not included in the report.

He continued that what alarmed many was the section on the balance of payments, particularly the trade balance denominated in foreign currency, which revealed a deficit of $2.4 billion as of late February 2025. The bigger shock came from the significant rise in dollar sales, especially for personal purposes, which surged by over 90%, while the general rate of letters of credit increased by 30% compared to the highest levels of previous years.

He emphasized that concerns arose due to an overall 65% growth in foreign currency sales compared to the highest monthly averages of past years. This sharp rise in currency sales raised alarm bells for many, but in his view, the indicators, while surprising to some, are not unusual and can be explained as follows. Between 2023 and 2024, the Central Bank of Libya accumulated nearly $8 billion in reserves in gold and dollars. However, during the same period, 39 billion dinars were created, in addition to 7 billion dinars printed after the August 2024 central bank crisis and earlier due to the shutdown of the Sharara oil field. These disruptions hindered oil exports and reduced revenues, leading to a budget deficit in the latter half of 2024. In total, 46 billion dinars were created over 24 months. This expansion in the money supply and the monetary base, representing the central bank’s debt, fueled the growing demand for dollars.

He explained that these newly created 46 billion dinars have been chasing the 8 billion dollars accumulated in 2023 and the first quarter of 2024.

He added that to restore balance and curb the money supply, the Central Bank of Libya may have to reevaluate the dinar’s exchange rate to absorb the excess liquidity. Unfortunately, the 27% tax on dollar sales imposed in April 2024 by the House of Representatives was meant to absorb the surge in money supply, which ideally should have been achieved by adjusting the exchange rate to absorb the 39 + 7 = 46 billion dinars. However, due to lawsuits and public pressure, the Central Bank of Libya reduced the tax to 15%.

He noted that lowering the tax to 15% created a 12% gap between the official and parallel exchange rates, encouraging speculators to profit from the difference, which amounted to $480 million, equivalent to over 2.9 billion dinars.

He stressed that the 12% gap between the official and parallel rates was a key driver of speculation and rising demand for dollars. As a result, dollar demand surged to $6 billion within 59 days, with $3 billion allocated for personal purposes and $2.5 billion for letters of credit. He pointed out that for the first time in Libya’s history, personal dollar allocations exceeded business credit allocations by more than 20%.

He posed the question of what should be done. Maintaining the current exchange rate and tax would mean absorbing the 46 billion dinars at the cost of sacrificing the $8 billion accumulated in 2023 and early 2024, which he does not recommend. Changing the exchange rate to absorb the 46 billion dinars is the solution he strongly supports, regardless of the cost, provided that the government and future administrations commit to restraining public spending.

He concluded that regardless of the approach taken, for the Central Bank of Libya’s policies and plans to succeed, government spending must be unified under an approved budget, expenditure must be reduced and rationalized, fuel subsidies—which cost $14 billion annually and are subject to theft, smuggling, and misuse—must be addressed, and government spending must not exceed annual revenues. Otherwise, the primary culprits will be the legislative and executive authorities.