Dr. Abu Bakr Abu Al-Qasem, Head of the Libyan Academic Accounting Department, exclusively told our source that the Central Bank of Libya’s report from January 1 to February 28, 2025, revealed that foreign currency sources reached 3.6 billion USD, while foreign currency usage exceeded 6 billion USD, resulting in a deficit of 2.5 billion USD in less than two months.
He continued, saying that this high demand for foreign currency poses a future risk to the country’s situation if the demand continues at this rate. He raised the important and puzzling question of what is fueling this excessive demand for foreign currency.
He added, “Firstly, we believe that the excessive and inflated spending by both governments in the East and West, without a unified and approved budget, is one of the main factors fueling this excessive demand. We have warned for a long time about the dangers of continuing this uncontrolled approach and the need to agree on a unified, consensual budget.”
He further stated, “If this uncontrolled and inflated spending continues, it will further fuel the demand for foreign currency, especially with the decline in oil revenues being deposited into the Central Bank. This situation will leave the Central Bank unable to meet the demand for foreign currency in the coming period, and it may be forced to devalue the dinar again to address this demand. This would be disastrous for the national economy and daily consumer prices.”
