{"id":253503,"date":"2025-04-06T19:29:51","date_gmt":"2025-04-06T17:29:51","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=253503"},"modified":"2025-04-06T19:29:51","modified_gmt":"2025-04-06T17:29:51","slug":"exclusive-al-bouri-to-sada-the-dinar-devaluation-wont-be-the-last-if-government-deficit-financing-continues","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/exclusive-al-bouri-to-sada-the-dinar-devaluation-wont-be-the-last-if-government-deficit-financing-continues\/","title":{"rendered":"Exclusive: Al-Bouri to Sada: &#8220;The Dinar Devaluation Won\u2019t Be the Last if Government Deficit Financing Continues&#8221;"},"content":{"rendered":"\n<p>Banking expert <em>Naaman Al-Bouri<\/em> spoke exclusively to our source regarding the Central Bank\u2019s latest statement, saying:<br>\u201cThe statement issued today by the Central Bank of Libya shows that the bank is facing a difficult and complex situation.\u201d<\/p>\n\n\n\n<p>He added:<br>\u201cExcessive public spending by two governments, along with resorting to deficit financing during Q4 of 2024 and Q1 of 2025, coinciding with the decline in oil and sovereign revenues, all pushed the Central Bank to make the decision to devalue the exchange rate.\u201d<\/p>\n\n\n\n<p>He continued:<br>\u201cThe key question now is: Can the Central Bank refuse to continue financing the deficit until a unified budget and austerity-based fiscal policies are implemented?\u201d<\/p>\n\n\n\n<p>He further stated:<br>\u201cUnfortunately, the absence of the interest rate\u2014as one of the most important monetary policy tools\u2014has forced the Central Bank to use the exchange rate as its only tool, which poses serious economic risks.\u201d<\/p>\n\n\n\n<p>Al-Bouri stressed:<br>\u201cThe Central Bank must insist on its commitment not to finance any government through deficit spending. Government funding must be directly tied to state income from oil and other sources. Chapter II of the budget must be strictly linked to actual state revenues.\u201d<\/p>\n\n\n\n<p>He emphasized:<br>\u201cIf the Central Bank cannot stop deficit financing, then today\u2019s decision to devalue the dinar will not be the last one this year.\u201d<\/p>\n\n\n\n<p>He concluded:<br>\u201cDeficit financing means creating a new money supply, and every new dinar created will seek to convert into dollars, further exacerbating the exchange rate crisis. Therefore, all off-budget government financing must immediately stop. The legislative authorities must take historic responsibility to unify the government and adopt a single budget that does not exceed state revenues. The current situation requires a collective effort from all sides.\u201d<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Banking expert Naaman Al-Bouri spoke exclusively to our source regarding the Central Bank\u2019s latest statement, saying:\u201cThe statement issued today by the Central Bank of Libya shows that the bank is facing a difficult and complex situation.\u201d He added:\u201cExcessive public spending by two governments, along with resorting to deficit financing during Q4 of 2024 and Q1 [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":253504,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[628,658,613],"class_list":["post-253503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-central-bank","tag-exchange-rate","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/253503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=253503"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/253503\/revisions"}],"predecessor-version":[{"id":253505,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/253503\/revisions\/253505"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/253504"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=253503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=253503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=253503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}