The Libyan businessman Husni Bey told our source that every economic equation requires clear and responsible decisions. He pointed out that the Central Bank of Libya is obliged to sell a specific amount of dollars at a certain price in order to meet the financial obligations needed to cover the government(s)\u2019 public expenditures, as 93% of public spending is paid in Libyan dinars through selling oil dollars. <\/p>\n\n\n\n
This includes salaries, operational expenses, development, and the remaining budget chapters.He explained that the fuel item alone consumes 12 billion dollars\u2014or 33% of Libya\u2019s total production of oil and gas\u2014which is equivalent to 77 billion dinars. Meanwhile, the Central Bank must cover the remaining public spending, valued at more than 135 billion dinars, by selling oil dollars to obtain the required amount of local currency (the Libyan dinar).<\/p>\n\n\n\n
Husni Bey added that the dollar has effectively become a commodity sold and exchanged in return for purchasing another \u201ccommodity\u201d\u2014the Libyan dinar\u2014in order to obtain the dinars needed to cover public expenditure items, mainly:<\/p>\n\n\n\n
Chapter 1 (Salaries): 70 billion dinars<\/p>\n\n\n\n
Chapter 2 (Operational expenditures): 14 billion dinars<\/p>\n\n\n\n
Chapter 3 (Development): More than 35 billion dinars<\/p>\n\n\n\n
Chapter 4 (Child, women, and girls allowances; medical supply; water; health; environment): 18 billion dinars<\/p>\n\n\n\n
He questioned, with astonishment, the voices opposing the sale of 20 billion dollars annually to cover 135\u2013137 billion dinars of public spending\u2014while at the same time rejecting the depreciation of the dinar and raising their voices when resorting to foreign currency reserves. He stressed that the figures and the equation are clear, and that the Central Bank is obliged and compelled to sell no less than 20 billion dollars annually to ensure the state meets its basic obligations at an exchange rate of 6.250 LYD per dollar.<\/p>\n\n\n\n
Therefore, the shortfall in oil revenues needed to cover 32 billion dollars\u201412 billion for fuel and 20 billion for the remaining four chapters\u2014places the Central Bank, the government, and the public before three options:<\/p>\n\n\n\n
1. Reduce spending and replace subsidies with cash transfers to ensure fair distribution, rationalize consumption, curb smuggling, and stop theft.<\/p>\n\n\n\n
2. Lower the exchange rate, accepting inflation, the collapse of the dinar\u2019s purchasing power, and increased poverty.<\/p>\n\n\n\n
3. Resort to and spend from the reserves, leading to lower reserves\u2014and stop the shouting.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Libyan businessman Husni Bey told our source that every economic equation requires clear and responsible decisions. He pointed out that the Central Bank of Libya is obliged to sell a specific amount of dollars at a certain price in order to meet the financial obligations needed to cover the government(s)\u2019 public expenditures, as 93% […]<\/p>\n","protected":false},"author":13,"featured_media":255565,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[628,613],"class_list":["post-255564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-central-bank","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/255564","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=255564"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/255564\/revisions"}],"predecessor-version":[{"id":255566,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/255564\/revisions\/255566"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/255565"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=255564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=255564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=255564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}