Economic expert Mohamed Al\u2011Sanoussi told our source exclusively that 2025 was a very bad year economically, adding that citizens already feel this reality and do not need anyone to tell them so. Unfortunately, oil revenues are not fully transferred to the Central Bank, despite claims that barter arrangements have stopped; in reality, they continue in other forms. Political division and spending by both sides without an approved budget\u2014exceeding revenues\u2014are still ongoing, which is why deficits appear in the data issued by the Central Bank.<\/p>\n\n\n\n
He added that, regrettably, officials\u2014and even some economists\u2014fail to recognize that fiscal policy is what drives the real economy in Libya. Reforming fiscal policy is the key to fixing the economy, while monetary policy should be adjusted to support fiscal policy and align with its objectives. What is happening now in Libya is that monetary policy is being asked to put out fires and solve problems created by fiscal \u201cpolicy.\u201d<\/p>\n\n\n\n
He continued: what the Central Bank is doing amounts to pouring gasoline on the fires of fiscal policy, worsening the situation by failing to provide liquidity, complicating and delaying letters of credit, and targeting importers who resort to the black market to import goods.<\/p>\n\n\n\n
He went on to say that 2026 will be worse if spending by the two governments continues without a budget, if oil revenues continue not to be fully transferred to the Central Bank, and if the Central Bank persists in not providing liquidity and in failing to adjust the exchange rate to confront demand pressures.<\/p>\n\n\n\n
As for the solutions that should be implemented, he outlined: He concluded by saying that, based on what we see today\u2014especially the parliament\u2019s decision to increase salaries for military personnel\u2014it is clear that officials have little understanding of the dire economic situation, and therefore there are no signs of improvement in the near term.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Economic expert Mohamed Al\u2011Sanoussi told our source exclusively that 2025 was a very bad year economically, adding that citizens already feel this reality and do not need anyone to tell them so. Unfortunately, oil revenues are not fully transferred to the Central Bank, despite claims that barter arrangements have stopped; in reality, they continue in […]<\/p>\n","protected":false},"author":13,"featured_media":255833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[1127,613],"class_list":["post-255832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-economic","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/255832","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=255832"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/255832\/revisions"}],"predecessor-version":[{"id":255834,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/255832\/revisions\/255834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/255833"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=255832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=255832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=255832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
First:<\/strong> rapid measures such as adjusting the exchange rate to meet market demand and needs and eliminate the gap with the black market, providing sufficient liquidity, reducing electronic payment fees, and minimizing the problems and errors associated with them.
Second:<\/strong> solutions that require political consensus and domestic and international pressure, such as agreeing on a single government, spending under a unified and approved budget aligned with revenue levels, combating corruption, and transferring all revenues to the Central Bank.<\/p>\n\n\n\n