Ridha Gargab to Sada: “Assessing the Readiness of Exchange Offices in Preparation for Their Launch Early Next Year”

The member of the Board of Directors of the Central Bank, Ridha Gargab, stated to our source that the Central Bank enjoys a significant degree of independence, though the environment remains pressuring on its Board of Directors. He explained that the Central Bank issues new decisions on a daily basis “to introduce reforms,” noting that monetary policy is unstable due to the lack of control over public spending. There are budgets that do not align with the state’s structure, and the existence of two governments is a reality, all of which are factors that affect the Central Bank.

Gargab added that what has fueled spending is the absence of a fair law. Although a law exists and is reapplied every year, it is implemented by one side only and does not take into account the economic situation or the structure of the state. There are entities included in the law that do not exist on the ground, while, conversely, there are entities that exist in reality but are not included in the law. He noted that the Central Bank has placed itself in a difficult position, as the law was designed for a single government, whereas the reality points to the existence of two governments, with which the Central Bank has to deal.

Gargab further stated that he addressed, at the Banking Forum, the independence of the Central Bank of Libya and governance in the banking sector. The sessions witnessed wide-ranging discussions, with most questions revolving around the Central Bank’s ability to perform its duties amid the political challenges and ongoing conflicts in the country. Undoubtedly, the current circumstances greatly affect the independence of the Central Bank; nevertheless, God willing, they are moving forward toward establishing a leading institution in Libya.

He continued: “As for electronic payments, we are satisfied with the level of progress achieved, as there is a good plan that shows clear improvement compared to last year. At this time last year, electronic payment was significantly lagging, and reliance on cash was high in the Libyan economy. Today, thanks be to God, reports published by the Central Bank show that the volume of electronic transactions has become very large, reaching billions. Yes, there is a liquidity crisis related to cash withdrawals due to circumstances well known to everyone, but, God willing, this crisis will gradually ease by the end of the year.”

Gargab concluded his statement by saying: “Regarding exchange offices, work is ongoing on the applications submitted by the owners of these offices and companies. Approvals were issued previously, and other approvals are currently in the process of being issued. The Bank is currently assessing the capacity and capabilities of these entities to manage this file, and we expect, God willing, that these offices will begin operating during the first quarter of next year.”