Economic expert Suleiman Al-Shahoumi commented exclusively to our source on the latest Central Bank report, stating: “Every time the Central Bank releases a report, it reminds us of the difficult economic situation and the confusion in Libya’s economic policies.”
Al-Shahoumi continued: “There is an unusual level of contradiction and instability between monetary and fiscal policies. The reality is bleak, and deficits have become a defining characteristic of Libya’s economy, whether in foreign currency expenditures or government spending.”
He added: “Libya’s economy is driven by two forces—the Central Bank’s money creation and the government’s spending. These forces have created a dangerously unstable situation, leading to an escalating public debt crisis. The government’s unchecked spending, combined with monetary expansion, is fueling this financial instability without a proper understanding of Libya’s economic realities and needs.”
Al-Shahoumi emphasized: “With multiple governments and entities managing the economy, confusion is inevitable due to conflicting interests, priorities, and responsibilities. If this situation persists, its consequences will be disastrous. A unified and comprehensive economic policy is essential to realign the country’s financial direction, particularly in monetary policy.”
He concluded: “What’s happening now reflects a deep-rooted flaw that appears beyond control, as long as each authority operates independently without coordination, a structured fiscal framework, or a clear monetary strategy from the Central Bank. This recklessness and lack of oversight could have severe repercussions.”
