Economics professor at the University of Benghazi, Ali Al-Sharif, told our source exclusively that eliminating currency speculation requires maintaining a steady supply of goods and services in the market to gradually eliminate excess demand. This, he explained, would significantly narrow the gap between supply and demand, limiting opportunities for speculation until they disappear naturally — thereby ending the phenomenon of “check burning.”
He added that to achieve this goal, public spending must be controlled so that expenditures remain within available revenues, while ensuring a careful balance between providing liquidity and promoting financial inclusion. This would help reduce reliance on cash over time and, consequently, limit the practice of check burning.
Al-Sharif continued, saying that the Central Bank must impose strict oversight on bank accounts and exchange companies to ensure transparency and prevent the exploitation of loopholes within the financial system.
He also noted that imposing fees on cash withdrawals could have a positive short-term impact by reducing cash withdrawals, but if maintained without complementary policies, it could lead to negative long-term effects.
He concluded by emphasizing that such a policy should be implemented alongside other measures that restore public confidence in the banking system and rebuild the natural relationship between individuals, traders, and financial institutions — ultimately supporting sustainable monetary and financial stability.
