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Author: Amira Cherni

Exclusive: Banking Source Denies Reports of Central Bank Considering Tax Rate Hike

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Our banking source revealed that reports about the Central Bank studying a tax rate increase are false, clarifying that such a decision falls under the jurisdiction of the House of Representatives, not the Central Bank.

The source further explained that the exchange rate is determined by the government, not the Central Bank, as the Libyan dinar’s value against the dollar is a direct result of the economic policies implemented by successive governments. If spending increases while revenues decline, the dinar weakens, and vice versa.

Independent: Lawyers Representing Libyan Government Demand France Pay €10 Million in Compensation – Here Are the Details

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Independent Arabia has revealed that the French Financial Prosecutor’s Office began its pleadings today, Tuesday, which will continue until Thursday evening, against former French President Nicolas Sarkozy and other defendants, including three former ministers, in the case of suspected Libyan funding for his 2007 election campaign.

According to the newspaper, the case dates back to late 2005 when Sarkozy was Minister of the Interior. He and 11 others are accused of making a corrupt agreement with Libyan President Muammar Gaddafi to fund his campaign to reach the Élysée Palace.

The report noted that since the trial began on January 6, the prosecution must systematically clarify its perspective on this complex case and will determine the requested penalty next Thursday.

The newspaper explained that Sarkozy faces a sentence of 10 years in prison and a fine of €375,000 ($405,700), in addition to being stripped of his civil rights, making him ineligible to run for office for up to five years.

The report added that this morning, lawyers representing the Libyan state demanded that the defendants be fined and ordered to pay €10 million ($10.8 million) in compensation.

Lawyer Marion Seran argued that the damages far exceed this amount, stating that “integrity is a cornerstone of democracy, and undermining it in a country still in the process of rebuilding poses a particular risk.”

Sarkozy has denied receiving any illicit funds from Libya or any other source and will be present throughout the three-day hearings.

The former president added, “I have the impression that we started from the premise that Sarkozy is guilty, and that the ‘case’ is no longer about seeking the truth but about the financial prosecutor’s office saving face.”

According to the newspaper, Sarkozy currently wears an electronic ankle bracelet to monitor his movements following his conviction for corruption and influence peddling, for which he was sentenced to one year in prison in a wiretapping case last December.

Exclusive: Dbeibeh Issues Decision to Establish a Fund for Supporting and Guaranteeing Financing for Startup Innovation Companies

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Our source has exclusively obtained the decision of the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, to establish a fund for supporting and guaranteeing financing for startup innovation companies.

The National Council for Economic Development will oversee the fund’s programs and advisory services, which include monitoring and evaluating the effectiveness of policies, programs, and initiatives supporting startups in Libya, as well as providing studies and technical consultations to develop startups within the national economy.

Ghassan Atiqa writes: The Libyan Dinar Between Monetary Policies and Economic Challenges.. A Quick Analytical Review 2015 – 2025

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The banking expert Ghassan Atiqa wrote an article titled: “The Libyan Dinar Between Monetary Policies and Economic Challenges: A Quick Analytical Review 2015-2025.”

Over the past decade, the Libyan economy has experienced sharp fluctuations due to the interplay of political and economic factors, multiple decision-making centers, and the lack of an integrated development strategy. The greatest pressure has been placed on the Libyan dinar, which has lost a significant portion of its value due to unbalanced monetary policies, the absence of structural reforms, and the accumulation of both internal and external crises.

Historical Roots of Economic Imbalances:

The key features of the current monetary crisis trace back to the long-standing economic policies that focused on increasing foreign currency reserves at the expense of developmental spending. For many years, the state concentrated on accumulating financial surpluses generated by oil exports without investing them in building a local production base. This approach entrenched a rentier economic model based on full export and import of goods and services. This weakened the state’s ability to absorb shocks and turned foreign reserves from a tool of monetary support into an end in itself, even at the expense of the national currency’s value.

The Money Creation Phase and the Escalation of the Crisis (2015–2020):

The signs of monetary expansion became clear in the middle of the last decade through the adoption of money creation policies by expanding currency printing or through banking restrictions without productive coverage. This approach continued for several years alongside institutional divisions, leading to inflation of the monetary base and the loss of control over monetary policy tools.

Although the state recorded a clear budget deficit during this period, it simultaneously enjoyed a surplus in the balance of payments, which explains the paradox between the deficit in the dinar and the surplus in dollars. However, instead of addressing structural imbalances, the focus was placed on increasing foreign currency reserves, which contributed to the devaluation of the dinar by approximately 79% during that period.

Repeated Crises and the Suspension of Oil Exports:

The crisis of halting oil exports in the middle of the last decade, and later in 2020, marked a turning point in the monetary path, as it led to a sharp decline in foreign currency inflows. The central bank had to compensate for this by expanding money creation, exacerbating the liquidity crisis and raising inflation rates.

Despite attempts to address the distortions through the imposition of foreign exchange sales fees of 185% in 2018, the implementation of these measures was selective, with some entities exempted. This created an unbalanced environment that contributed to political and economic escalation, reaching its peak with the resumption of halted oil exports in 2020.

Unification of Monetary Policies and Exchange Rate Change (2021):

The decision to unify the central bank and exchange rate at the beginning of 2021 was a positive step towards monetary stability. The adjustment of the dinar exchange rate provided greater liquidity for the state and increased its financial resources in dinars by nearly 300% compared to previous levels.

This coincided with a reduction in disputes over letters of credit and provided the government with a financial margin to fund its expenses without needing to print new money. However, this solution remained superficial and was not accompanied by structural reforms in the real economy.

Return of Monetary Pressures (2022–2024):

From the end of 2022 until March 2024, the money supply saw significant growth from 110 billion dinars to 150 billion dinars, an increase of 40 billion. During the same period, the monetary base grew from 64.4 billion to 98.8 billion dinars, an increase of 34.4 billion. The difference of 5.6 billion dinars is due to the expansion of commercial lending, while the largest portion (34.4 billion) of money was created without productive backing, what could be considered “money from nothing.”

These figures indicate that more than 31% of the new monetary base was created without an economic foundation, prompting authorities to impose a 27% fee to absorb this liquidity and curb inflation.

General Economic Results:

Despite a growth of foreign reserves by about 20 billion dollars between 2016 and 2020, the dinar lost 79% of its value. Between 2023 and the first quarter of 2024, foreign reserves grew again by about 8 billion dollars, but the dinar lost 27% of its value during the same period.

Conclusion:

The Libyan experience over the past years shows that an overemphasis on increasing reserves without real economic reform leads to short-term results at the expense of monetary stability. The Libyan dinar cannot be protected or regain confidence unless the structural causes of the crisis are addressed, foremost of which is the over-reliance on oil and the failure of economic policies to create sustainable productive development.

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Al-Zantouti Writes: “Our National Economy Between the Dinar Devaluation, Reserve Drain, and the IMF”

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Financial expert Khaled Al-Zantouti wrote an article stating: “In these blessed Ramadan days, we continue to receive troubling news and statistics. From horrific traffic accidents, leading to a significant number of deaths, to reports from the Central Bank highlighting the severe economic difficulties and the weakness of our economic structure. Our economy is built on a disastrous dual government spending shared by two competing governments, as if we were two separate countries, each with numerous shadow governments operating under different “legitimacies,” all trying to seize control to embed mismanagement, corruption, regionalism, and power struggles.

Major global newspapers accuse us of oil smuggling, with ships leaving national ports disappearing from radar, and no one knows where or how they go or who is behind them. There are also accusations of certain names and companies (allegedly private) collaborating with public institutions to oversee and execute “respectable” smuggling deals worth billions. We cannot confirm or deny these claims, but as the saying goes, “Where there’s smoke, there’s fire.” I won’t generalize, but let us take a look at the facts of some of the numbers published these days, summarized as follows:

  • Oil revenues deposited into the Central Bank over 17 days amounted to approximately 778 million dollars, while foreign currency sales reached 2.3 billion dollars. This means our dollar expenditure is about three times our dollar income.
  • Personal transfers accounted for almost 100% of documentary credits, meaning our personal expenses match what we import for food, drink, healthcare, transport, and so on.
  • Most of these personal expenses benefit from the difference between the official and parallel exchange rates, after commissions from Turkish and Emirati exchange companies and their Libyan partners.
  • If we continue on this path, we will need to use our reserves, possibly drawing 3 billion dollars a month. This means we will lose about 36 billion dollars annually from our reserves to cover the dollar financing gap, and we will completely deplete our reserves within two and a half years. After that, we’ll have nothing left but speculation and uncertainty, except for the fortunate few.

At the same time, some “economists” claim that oil will never fall below 80 or 70 dollars. Don’t they know that oil recently dropped to 30 dollars due to a surplus of oil supply? Could this happen again at any moment, especially with Trump’s policy, which repeatedly emphasizes reducing oil prices to below 50-60 dollars? With the potential for closer US-Russian relations and the possibility of Russia exiting the OPEC+ agreement, if oil prices drop to 50 or 60 dollars, we will burn through our reserves in a matter of months. And then, “God help us.”

There are no solutions for the Central Bank if this tragic situation continues, except for a dinar devaluation into the double digits, possibly bringing us under the control of the IMF and the World Bank. In such a case, we would have to adhere to their “magical” remedies and face their demands.

In these last ten days of Ramadan, we must turn to God, work towards unity, learn from history, and tackle corruption, mismanagement, and division. We pray for the success of the sincere people of our nation.”

Exclusive: Central Bank Sends New Cash Shipment from Mitiga Airport to Benghazi

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

The bank continues to dispatch cash shipments successively to ensure liquidity reaches all Libyan cities, as part of its planned strategy to provide cash flow, following the directives of Governor Naji Mohammed Issa and his deputy.

After Warning Against Double Spending and Depleting Foreign Currency Reserves… Several Experts Support Central Bank Measures and Propose Solutions

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In an important statement published on its page, the Central Bank of Libya revealed that foreign exchange sales executed between March 1 and March 17, 2025, amounted to approximately $1.1 billion for personal purposes and $1.2 billion for documentary credits, bringing total sales to $2.3 billion. Meanwhile, oil revenues deposited into the Central Bank during the same period amounted to only $778.0 million. The bank emphasized that it is facing significant challenges due to declining public revenues caused by reduced oil revenues and delays in their collection, which increase pressure on foreign reserves. Additionally, the continued rise in dual government spending increases demand for foreign currency, threatening financial sustainability and posing challenges to the bank’s efforts to maintain economic stability.

Our banking source revealed that, apart from the decline in revenues flowing into the Central Bank, another issue is the rising demand for foreign exchange. This is due to pressure on the foreign exchange sale system, as individuals log in from multiple devices simultaneously under one identity, enabling reservations worth millions within a short period. This negatively affects the system’s performance and the reservation process.

The head of the Accounting Department at the Libyan Academy, Dr. Abu Bakr Abu Al-Qasim, commented to our source, saying: “Do not leave the Central Bank alone.” He added that the weekly and monthly reports of the Central Bank serve as warning messages to all Libyans. It is as if the bank is telling us: The Central Bank is still standing alone against reckless governments with inflated and uncontrolled spending and against the National Oil Corporation, which operates unchecked, controlling oil revenue flows without oversight or accountability, in clear violation of the laws and regulations governing the state’s public finances.

He continued: It is also fighting against speculators leading this war against the dinar. Today, it is necessary for everyone, without exception—whether elite or ordinary citizens—to stand firmly with the Central Bank of Libya’s management in its battle to defend the strength of the struggling dinar.

Former member of the Central Bank’s Exchange Rate Committee, Musbah Al-Akari, stated on his official Facebook page: Since the arrival of the new administration at the Central Bank, it has been making great efforts to restore some strength to the Libyan dinar against foreign currencies. Despite some victories, it has found itself in a real battle alone, without support—even from the citizens themselves.

He added: The Central Bank found itself between two governments, each claiming sole legitimacy and authority over expenditures. One government spends here, the other spends there, and everyone knows that increased spending means injecting new money into the market, leading to increased demand for foreign currencies.

Al-Akari further explained: Despite the Central Bank spending $7 billion—equivalent to 40 billion Libyan dinars—in three months, the exchange rate continues to rise.

He pointed out another issue: Citizens rushing to banks with cash to request personal-purpose cards, which they then use for activities other than what the Central Bank intended—essentially speculating on their own currency without any national concern for the consequences. They themselves will ultimately suffer from the rising prices.

Al-Akari proposed solutions rather than further complicating the crisis, stating:

  1. Developmental spending is not a problem even if it creates a deficit, as it contributes to economic growth.
  2. The real spending issue lies in operational expenditures, which have surpassed 85 billion dinars (including salaries, children’s and spouse allowances, and the second chapter of the budget). These expenses drive up foreign exchange rates.
    • A suggested solution is reducing salaries by 15%, without affecting low-income salaries (below 1,000 dinars).
    • Eliminating barter transactions immediately.
  3. Implementing strict monitoring mechanisms for personal-purpose cards and documentary credits to ensure foreign exchange is used for its intended purpose, imposing severe penalties on those who falsify information.
  4. Reforming fuel subsidies, as the current system results in a loss of 45 billion dinars annually, benefiting smugglers at the expense of honest citizens. The solution involves:
    • Gradually removing subsidies and setting fuel prices at 1 dinar per liter.
    • Establishing two oil refineries to achieve self-sufficiency, financed through private sector investment in collaboration with banks.
  5. Separating Chapter III of the budget from the state budget to transform development projects (such as roads, electricity plants, oil refineries, and major agricultural initiatives) into investment projects funded by the private sector and financial institutions under the supervision of reputable foreign companies.
  6. Improving media discourse to educate Libyans on the shared responsibility for addressing economic challenges, avoiding fearmongering, and promoting productivity instead of negativity.
  7. Leveraging Libya’s wealth by diversifying sources of income through industry, agriculture, and tourism investments.
  8. Reducing embassy staff abroad to the minimum necessary.
  9. Requiring Libyan embassy employees abroad to deposit two months of their salaries annually in Libyan banks, receiving local currency in exchange.
  10. Imposing a rule for Libyans with foreign memberships to deposit at least 70% of their foreign currency earnings into Libyan banks in exchange for local currency.

Economist Anas Shneibish also provided a set of solutions in a statement to our source:

Urgent Solutions:

  • Controlling the exchange rate: Through a calculated intervention by the Central Bank to regulate foreign exchange flows and curb speculation.
  • Rationalizing public spending: By implementing strict policies to monitor and limit government expenditures.
  • Accelerating the collection of oil revenues: By restructuring sales operations and renegotiating with partners to ensure steady cash flows.
  • Strengthening foreign reserves: By imposing stricter controls on documentary credits and unnecessary transfers.

Long-Term Solutions:

  • Diversifying income sources: By supporting industries, agriculture, and tourism to reduce dependence on oil.
  • Encouraging local and foreign investment: Through economic reforms and ensuring political and security stability.
  • Modernizing the banking system: By updating monetary policies and promoting financial inclusion.
  • Boosting domestic production: By providing incentives to national industries to decrease reliance on imports.

Economic expert Abdul Hamid Al-Fadhil told our source: “Where is this massive amount of dinars coming from to demand such unprecedented levels of foreign currency for the fourth consecutive month?

From last December until March 12, total foreign currency usage amounted to approximately $11.5 billion, which translates to around 65 billion dinars requested in foreign exchange.

I cannot find an explanation for this unprecedented and alarming demand, except for parallel spending of extremely large sums by the parliament-appointed government, which may be sourced from (the use of commercial bank deposits + printing currency)!”

Thus, disclosing the amounts spent by the Hamad government and their sources of funding, as well as unifying public spending, has become a matter of utmost urgency that cannot be delayed.”

Economic expert Saber Al-Wahsh told our source: “Uncontrolled spending has pushed the demand for foreign currency to $2.3 billion, while revenues stood at just $778 million, resulting in a deficit of $4 billion in just two and a half months.”

He added: “Based on the latest statement and the Monetary Policy Committee meeting, I believe the central bank will resort to adjusting the exchange rate, thinking it is a solution, but it is merely a temporary fix.”

He continued: “The correct short-term solution is to unify and regulate public spending, ensure the stability of foreign revenues, and avoid deficit financing under any circumstances—except for salaries.”

Oil Tanker Mardi Completely Disappears After Smuggling 13,000 Tons of Diesel in Benghazi Port – Financial Times Unveils Hidden Details

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The Financial Times reported on Friday that in late March 2024, the oil tanker “Mardi,” flying the flag of Cameroon, vanished from ship tracking databases after spending two days roaming the Mediterranean east of Malta. It reappeared a month later in northern Libya.

According to the newspaper, “Mardi” is one of 48 vessels identified by a UN expert panel monitoring Libya. In their latest report from December, they stated that the tanker had made 14 visits to Benghazi port and smuggled more than 13,000 tons of diesel between March 2022 and October 2024, violating UN sanctions on Libya.

The report also noted that the International Maritime Organization has no information on the owner of “Mardi.”

UN experts indicated that smuggling is facilitated through a controversial barter system, where Libya, lacking large-scale fuel refining capacity, exchanges its crude oil production for refined fuel instead of purchasing it with cash. The fuel is sold domestically at heavily subsidized prices.

Illicit Oil Trade Keeping Libya Divided

The report states that subsidized fuel is smuggled out of the country and sold, helping to sustain competing political factions. However, some of this imported cheap fuel is also smuggled abroad and sold at black market rates or with forged documents at market prices. This system generates a steady revenue stream for armed groups linked to the rival factions controlling Libya.

Charles Cater, director of investigations at The Sentry, an investigative organization tracking corruption, stated that while entire regions of Libya frequently suffer from fuel shortages, the country’s rulers appear content with the massive fuel swap program.

According to the Financial Times, the dollar value of the oil exchanged more than doubled, reaching $8.65 billion between 2021 and 2023. Critics argue that the system is opaque and lacks oversight.

Wolfram Lacher, a researcher at the German Institute for International and Security Affairs, described the system as turning fuel imports into a “black box.” The National Oil Corporation (NOC) did not respond to requests for comment. Meanwhile, data from commodities consultancy Kpler shows that Libya’s fuel imports nearly doubled, from 5.5 million tons in 2020—before the barter system—to 10.35 million tons in 2024.

A senior diplomat familiar with Libyan affairs estimated that Benghazi’s fuel exports generate millions of dollars. A World Bank report published in October 2024 estimated Libya’s annual losses due to illicit trade at over $5 billion.

The report also highlighted that “fuel smuggling from Benghazi port has significantly increased since the war in Ukraine.”

The rise in imports has further strained Libya’s struggling economy by increasing subsidy costs. In a letter to Prime Minister Dbeibah in March 2024, then-Central Bank Governor Sadiq Al-Kabir warned that the country’s annual fuel import costs of $8.5 billion “exceed Libya’s actual needs.”

He noted that subsidies had tripled to $12.5 billion between 2021 and 2023, with fuel subsidies accounting for $8.4 billion of the total annual figure.

Al-Kabir, whom Dbeibah dismissed in August, stated: “Our objection was that one liter of fuel costs us a dollar but is sold for three cents. This costs the state enormous sums, and a large portion of this fuel is smuggled abroad.”

According to an Audit Bureau report, three subsidiaries of the “BGN” company received a total of $2.7 billion worth of crude oil in 2023 under the barter system, representing 30% of the trade volume and the second-largest share after Gulf Upstream.

In a statement, BGN claimed that it operates in full compliance with all regulations governing oil trading in Libya through transparent and official communication with the National Oil Corporation and relevant authorities.

The company stated that it is “fully qualified” to participate in the barter system, being “one of 12 companies selected in 2021 through a transparent and competitive bidding process involving 20 eligible local and international firms.”

Signs the Barter System May Be Ending

There are now indications that the barter system may be coming to an end due to increasing local and international pressure. In a mid-January letter seen by the Financial Times, Libya’s Attorney General ordered the National Oil Corporation to “immediately cease” the practice of crude-for-fuel swaps and adopt contracting mechanisms ensuring transparency in fuel supply agreements.

The letter also stated that fuel smuggling had surged due to the barter system, which it claimed did not serve the public interest.

A senior diplomat remarked that “international and domestic pressure has escalated, possibly leading the beneficiaries of this system to decide that now is the time to stop, as the risks outweigh the benefits.”

The newspaper further reported that in November, then-NOC chairman Farhat Bengdara was summoned by the Attorney General for a meeting to discuss the barter system, alongside the head of the Audit Bureau and the new Central Bank Governor.

Two sources familiar with the meeting said that Bengdara was “shocked” by the extent of details the Attorney General had gathered about the alleged corruption and agreed to end the barter system by early 2025. However, he suddenly left his position in mid-January, citing health reasons, and did not respond to requests for comment.

His successor, Masoud Suleiman, informed the Prime Minister in a letter seen by the Financial Times that the NOC would halt the barter system starting in March but would not be responsible for fuel shortages if authorities failed to provide adequate funds for imports.

However, Libyan experts believe that revenue flows from the system are likely to continue even after its official termination. Some point to Arkeno Oil, a company founded in 2023 that has, according to shipping documents, exported several crude oil shipments since early 2024.

Previously, direct sales of Libyan crude oil were managed by the NOC and foreign companies with joint ventures, such as Italy’s Eni, France’s TotalEnergies, and Austria’s OMV. Arkeno, originally an oil services company, is now the first private Libyan entity permitted by the NOC to export crude oil.

Exclusive: Central Bank Governor Briefs Aguila Saleh on Challenges Facing the Libyan Dinar, Stresses the Need for a Unified Budget

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The Central Bank of Libya exclusively told our source that during an urgent visit, the bank’s governor provided a briefing to the Speaker of the House of Representatives, Aguila Saleh, on the latest economic and financial developments in the country. The governor outlined key challenges hindering the CBL’s efforts to strengthen the Libyan dinar, citing rising dual public expenditures, inefficiency in spending, declining oil and sovereign revenues, and a lack of coordination between policies.

During the visit, the governor reaffirmed that the CBL is working professionally and with its full staff to address these challenges. He also stressed the need for coordination between fiscal, trade, and monetary policies, emphasizing the importance of a unified budget to facilitate the bank’s operations.

Exclusive: Central Bank: New Shipment of Printed Currency Arrives from Abroad and Will Be Distributed to Commercial Banks in the Coming Days

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A senior official at the Central Bank of Libya exclusively told our source that, as part of the bank’s plan to ensure cash liquidity across all Libyan cities, a new shipment of printed currency has just arrived from abroad.

The shipment has been transferred directly to the Central Bank to support the Issuance Department’s reserves, in preparation for distribution to commercial bank branches across Libyan cities and villages in the coming days, based on demand, ahead of the Eid al-Fitr holiday.

Additionally, shipments will continue to arrive in succession, per the directives of CBL Governor Naji Mohammed Issa, until the cash liquidity shortage is fully resolved.

Exclusive: Zarmouh Proposes Solutions to Avoid Devaluation of the Dinar

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Professor of Economics at the Libyan Academy, Dr. Omar Othman Zarmouh, told our source that the Central Bank of Libya’s statement clearly indicates that the amount of foreign currency received from the National Oil Corporation is significantly lower than the demand, resulting in a foreign exchange deficit.

He continued: “The statement suggests that, to stabilize the exchange rate, the Central Bank is willing to cover the deficit by withdrawing from its reserves.”

He added: “My comment on this is that while this approach is sound and appropriate in the short term—since reserves exist for this purpose—the Central Bank’s role in ensuring monetary stability should involve adding to foreign exchange reserves during surplus periods and withdrawing from them during deficits.”

He emphasized: “In the long term, however, the concern is that a persistent deficit could become chronic, making the devaluation of the dinar inevitable.”

To avoid the need for devaluation, the following policies must be adopted:

  1. Increase oil production and exports.
  2. Require the National Oil Corporation to transfer oil revenues immediately to the treasury account at the Central Bank of Libya without any delays.
  3. Prohibit the National Oil Corporation from importing fuel through barter agreements, as these are inefficient, prone to corruption, and violate the state’s financial system law.
  4. Adopt a unified state budget that aligns with Libya’s economic capacity to prevent inflation, ensuring it is categorized by sectors, municipalities, and institutions, regardless of political and institutional divisions.
  5. Ensure that funding sources, expenditures, and their objectives—including development spending—are clearly defined and subject to oversight by the Audit Bureau, the Administrative Control Authority, and the Anti-Corruption Commission. Additionally, official institutions should issue quarterly reports to track revenues and expenditures.

Exclusive: Abulqasim: Do Not Leave the Central Bank Alone

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The head of the Accounting Department at the Libyan Academy, Dr. Abu Bakr Abulqasim, told our source: “Do not leave the Central Bank alone.” He added that the Central Bank’s weekly and monthly reports serve as warning messages to all Libyans, as if the bank is telling us: The Central Bank remains standing alone, facing unrestrained governments with excessive and unregulated spending, and the National Oil Corporation, which operates unchecked, controlling the flow of oil revenues without oversight, in blatant violation of laws and regulations governing the state’s public finances.

He continued: “It is also facing speculators who are waging this war against the dinar. Today, it is imperative for everyone—both elites and the general public—to stand firmly with the Central Bank of Libya in its battle to defend the strength of the fragile dinar.”

Foreign Currency Sales Rise While Libyan Oil Revenues Decline… “US Website” Reveals Economic Impact in Libya

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The American website APA reported that the Central Bank of Libya has expressed concerns over a significant gap between foreign currency sales and oil revenues in mid-March, placing increasing pressure on the country’s reserves and economy.

The website confirmed that between March 1 and 17, 2025, the Central Bank of Libya sold $2.3 billion in foreign currency, while oil revenues during the same period amounted to only $788 million. This stark contrast highlights the growing pressure on Libya’s financial stability.

The website pointed out that despite these challenges, the Central Bank of Libya remains committed to ensuring regular foreign currency supplies to meet local market needs, while simultaneously maintaining financial sustainability and foreign reserves.

The article further noted that data from January and February 2025 show a rising trend in foreign currency usage, with $5.53 billion used, marking a 395% increase compared to the same period last year. Of this usage, 53.7% was private sector spending, and 43.1% was related to letters of credit.

The website concluded that the combination of rising demand for foreign currency and declining oil revenues is exerting significant pressure on the overall economic balance in Libya, signaling potential future economic challenges.

Shneibish: The Stability of the Libyan Dinar Between Present Challenges and Future Solutions

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Written by Anas Shneibish: The Stability of the Libyan Dinar Between Present Challenges and Future Solutions

The Libyan economy is under increasing pressure due to the continuous decline in oil revenues and the sharp rise in demand for foreign currency. A statement issued by the Central Bank of Libya on March 18, 2025, revealed that foreign currency sales reached $2.3 billion in the first 17 days of the month, while oil revenues transferred to the bank did not exceed $778 million. This clear imbalance between spending and revenue poses a threat to financial sustainability and weakens the state’s ability to maintain exchange rate stability.

Current Economic Challenges

The ongoing financial crisis stems from several interconnected factors, including:

  1. Declining oil revenues and delays in collecting proceeds.
  2. Rising government spending, which depletes foreign reserves.
  3. Increased demand for the dollar, contributing to the exchange rate hike in the parallel market, fueling inflation and higher prices.
  4. Weak domestic production, leading to heavy reliance on imports, exacerbating the foreign currency crisis.

Short- and Medium-Term Solutions

To ensure the stability of the Libyan dinar, effective strategies are needed at both short- and long-term levels:

Immediate Solutions:

  • Exchange rate control: A well-planned intervention by the Central Bank to regulate foreign currency flows and curb speculation.
  • Public spending rationalization: Implementing strict policies to monitor and limit government expenditures.
  • Accelerating oil revenue collection: Restructuring sales processes and negotiating with partners to ensure a steady cash flow.
  • Strengthening foreign reserves: Imposing strict oversight on letters of credit and unnecessary transfers.

Long-Term Solutions:

  • Diversifying income sources: Supporting industries, agriculture, and tourism to reduce dependence on oil.
  • Encouraging local and foreign investment: Improving the economic environment and ensuring political and security stability.
  • Developing the banking system: Modernizing monetary policies and promoting financial inclusion.
  • Boosting domestic production: Facilitating national industries to reduce reliance on imports.

Conclusion

The stability of the Libyan dinar and financial balance requires swift and well-balanced measures that combine urgent financial reforms with a long-term strategic vision. Without decisive steps to regulate monetary and financial policies and coordination among all political, financial, and economic entities, the Libyan economy will remain vulnerable to further fluctuations, threatening citizens’ livelihoods and local market stability.

Sada Apologizes to Munther Al-Shahoumi and Its Followers Regarding the Report on Oil Smuggling Suspects – Here Are the True Details

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Sada Economic Newspaper extends its apologies to Mr. Munther Al-Shahoumi, who was mentioned as an assistant in money laundering for transferring suspicious funds. The information was based on a fabricated and circulated version of the Africa Intelligence report. The newspaper also apologizes to all individuals whose names were mentioned in that context, as well as to its readers.

The original report from the site stated that the emerging company Arkenu Oil, at the center of the agreement between Abdul Hamid Dbeibeh and Khalifa Haftar, includes individuals close to the Prime Minister (Abdul Hamid Dbeibeh) as well as members of Haftar’s family.

Despite its significant influence on the Libyan oil market, Arkenu Oil Co remains secretive about the identities of its founders and shareholders. According to the UN Panel of Experts, the company is indirectly controlled by Saddam Haftar, the son of Khalifa Haftar, commander of the Libyan National Army.

Arkenu Oil was established in Benghazi, Haftar’s stronghold in eastern Libya, in April 2023, and is officially represented by Munir Abu Bakr Al-Maslati, a former official at the Arabian Gulf Oil Company (AGOCO). Despite its clear ties to the East, the company’s management also has connections with the circles surrounding Abdul Hamid Dbeibah, the Prime Minister of the Government of National Unity.

The company, headquartered in Benghazi, expanded in September 2024 by opening a branch in London under the name Arkenu Oil Co Ltd. Until January, this branch was managed by Sami Abu Sedra, a member of a family closely connected to Abdul Hamid Dbeibeh. Sami Abu Sedra currently works at the Qatari law firm Qlex Law Firm and Legal Consultations, which lists Arkenu Oil as one of its clients. Within this firm also works businessman Munther Al-Shahoumi, known for his close ties to the Abu Sedra family.

Ali Abu Sedra is also a partner in Pearls Capital Partners, a British investment fund registered at the same address as Arkenu Oil Co Ltd in London.

The report also mentions Mohammed Saad Al-Barad’a, a lesser-known figure who served as the director of Arkenu Oil Co until January 2025. He now works for Aseel Holding Co, a Libyan company active in food industries, general industries, and construction. In February, Al-Barad’a established another company in London, Aseel Holding Ltd, in partnership with his relative Abdullah Saad Al-Barad’a and Ali Abu Sedra.

The Major NOC Tender

Thanks to its network of connections, Arkenu Oil manages oil concessions in both eastern and western Libya. The company is now seeking to secure a major oil exploration and development contract tendered by the National Oil Corporation (NOC) on March 3, which allows Libyan private companies to compete alongside major foreign firms.

Arkenu Oil had already been an exception, as it was the first private Libyan company authorized to export oil in 2024. It secured a contract with AGOCO, a subsidiary of the NOC, through Munir Abu Bakr Al-Maslati, to develop the NC4 concession located 150 km south of Tripoli.

Under this contract, Arkenu Oil receives 25% of production, granting it unprecedented benefits compared to state-owned companies. Furthermore, the company’s financial transactions are conducted through the Libyan Foreign Bank (LFB), affiliated with the Central Bank of Libya, which handles fund transfers to the state budget.

In March 2023, Arkenu Oil also obtained authorization to invest in the Latif 59 and NC 129 fields in the Sultan area, thanks to the support of Masoud Suleiman Mousa, who previously held a senior position at the NOC and later became its chairman.