The Central Bank of Libya Moves with International Weight: Major Partnerships and Upcoming Reforms

The Governor of the Central Bank of Libya, Mr. Naji Issa, held a series of important meetings during his recent visit to the United States, on the sidelines of the IMF and World Bank Annual Meetings.

One of the key meetings was with J.P. Morgan Bank, marking a strategic step aimed at achieving several goals:

• Foreign Reserves Management: Supporting the safe and effective investment of state funds to preserve and grow their value.
• Access to Global Markets: Opening financial and investment channels for Libya in international markets.
• Training and Knowledge Transfer: Providing training programs for Libyan professionals in economics, risk management, and financial analysis.
• Fintech Development: Supporting the modernization of payment and transfer systems and strengthening Libya’s banking infrastructure.
• Boosting International Confidence: Enhancing Libya’s financial image and attracting global banks and investors for cooperation.

This step is seen as a genuine starting point for improving Libya’s economy and enhancing its foreign relations.

The governor also met with Kenji Okamura, Deputy Managing Director of the IMF, to discuss the outcomes of Article IV consultations, the efforts of Libyan institutions in providing data and information, and the governor’s initiative to address Libya’s structural economic imbalances through a proposed package of reforms. These include the unification of public spending, review of fiscal and trade policies, and received a warm welcome from IMF representatives, who expressed readiness to provide technical support, especially in exchange rate policy and enhancing the value of the Libyan dinar.

In another meeting, the governor was hosted by the American Business Association to discuss economic developments and Libya’s business and investment climate. He assured attendees that foreign currency sales and letters of credit operations are proceeding normally, reaffirming the central bank’s commitment to economic stability.

Additionally, the governor met with the Vice President of the World Bank for Investment, discussing potential cooperation in capacity building, training of Libyan personnel, and market trend analysis. They also proposed launching a leadership development program aligned with the Central Bank’s future vision.

Other key meetings included:

• A session with Osman Dione, World Bank Vice President for MENA, focusing on recovery and economic reform priorities, financial inclusion, the development of e-payment systems, and support for SMEs.
• A meeting with senior executives from Visa and MasterCard to explore enhancing financial inclusion, expanding digital payment services, and ensuring financial transactions comply with anti-money laundering and counter-terrorism financing standards.

Regional Participation:
The governor also took part in the meeting of central bank governors and finance ministers of the MENAP region (Middle East, North Africa, Afghanistan, and Pakistan), where participants addressed regional economic issues, strategies to absorb recurring economic shocks, and anti-inflation policies. The session was chaired by IMF Managing Director Kristalina Georgieva.

Further Engagements:
Governor Issa also met with the IMF’s Director of the Middle East and Central Asia Department, where they discussed Libya’s latest economic developments and the governor’s short- and long-term vision for crisis resolution. The IMF team praised the Central Bank’s efforts in addressing liquidity shortages and achieving local consensus on urgent economic reforms.

In Conclusion:
Attendees reaffirmed the importance of local and international support for the governor’s initiative, viewing it as a promising step toward achieving economic stability and improving Libya’s financial indicators.