{"id":256314,"date":"2026-02-25T22:36:18","date_gmt":"2026-02-25T20:36:18","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=256314"},"modified":"2026-02-25T22:36:18","modified_gmt":"2026-02-25T20:36:18","slug":"husni-bey-the-central-bank-cannot-impose-fees-without-a-decision-from-aguila-saleh-explanation","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/husni-bey-the-central-bank-cannot-impose-fees-without-a-decision-from-aguila-saleh-explanation\/","title":{"rendered":"Husni Bey: “The Central Bank Cannot Impose Fees Without a Decision from Aguila Saleh, Explanation”"},"content":{"rendered":"\n

Libyan businessman Husni Bey<\/strong> wrote in an article:<\/p>\n\n\n\n

The Central Bank of Libya cannot impose fees without an official decision signed by the Speaker of Parliament, Aguila Saleh \u2014 100,000%<\/em>. In general, Libya\u2019s economic and financial crisis is behind the collapse of the dinar.<\/p>\n\n\n\n

Libya\u2019s current daily production stands at 1.35 million barrels of oil and 2.4 billion cubic feet of gas, covering about 93% of public spending after deducting the foreign partner\u2019s share. This leaves a net total of 88% from production in the form of shares, royalties, rights, and taxes.<\/p>\n\n\n\n

First: Structure of Public Spending (in Libyan dinars)<\/strong><\/h3>\n\n\n\n
    \n
  • Salaries: 70 billion<\/li>\n\n\n\n
  • Fuel: 98 billion<\/li>\n\n\n\n
  • Operational expenses: 14 billion<\/li>\n\n\n\n
  • Allowances (children, women, daughters, health supply, environment, water): 18 billion<\/li>\n\n\n\n
  • Development: 70+ billion<\/li>\n<\/ul>\n\n\n\n

    Total public spending:<\/strong> \u2248 270 billion LYD<\/p>\n\n\n\n

    Second: Net Spending After Excluding Fuel<\/strong><\/h3>\n\n\n\n
      \n
    • Total spending: 270 billion<\/li>\n\n\n\n
    • Fuel: 98 billion<\/li>\n<\/ul>\n\n\n\n

      Net spending after fuel deduction:<\/strong> 172 billion LYD<\/p>\n\n\n\n

      To cover this spending, the economy needs to sell foreign currency equivalent to at least 160 billion LYD<\/strong>. Accordingly, the Central Bank is compelled to sell the dollar at an exchange rate that allows financing of public spending of no less than this amount.<\/p>\n\n\n\n

      Roots of the Current Crisis<\/strong><\/h3>\n\n\n\n

      1. Uncontrolled Public Spending<\/strong>
      Spending without a disciplined budget, exceeding revenues and financed through deficit spending \u2192 resulting in continuous inflation and a decline in the dinar\u2019s purchasing power.<\/p>\n\n\n\n

      2. Monetary Financing & Exchange Rate Gaps<\/strong>
      Leads to:<\/p>\n\n\n\n

        \n
      • Dollar gap \u2248 50%<\/li>\n\n\n\n
      • Cash vs cheque gap \u2248 20%<\/li>\n<\/ul>\n\n\n\n

        3. Fuel Gap (Most Dangerous)<\/strong><\/p>\n\n\n\n

          \n
        • Cost: 98 billion LYD<\/li>\n\n\n\n
        • Actual revenue: \u2248 3 billion LYD<\/li>\n\n\n\n
        • Gap exceeding 3000%<\/li>\n<\/ul>\n\n\n\n

          Result:<\/strong> Smuggling, theft, distorted subsidies \u2014 ongoing for over 50 years.<\/p>\n\n\n\n

          4. Price Gaps as Hidden Taxes<\/strong>
          Whether in:<\/p>\n\n\n\n

            \n
          • Dollar exchange rates<\/li>\n\n\n\n
          • Cash vs cheque value<\/li>\n\n\n\n
          • Fuel subsidies<\/li>\n<\/ul>\n\n\n\n

            These act as unofficial taxes<\/strong> paid by all citizens through higher prices and reduced real income.
            They do not go to the Central Bank or government but are effectively collected from 100% of Libyans, benefiting only a few through speculation.<\/p>\n\n\n\n

            5. Source of Dollar Gap<\/strong>
            At least 30% comes from trading the $2,000 personal allowance rights<\/strong>, turning them into speculative tools.<\/p>\n\n\n\n

            6. Impact of Recent Decisions<\/strong>
            Imposing a 12% fee<\/strong> on the $2,000 personal allowance (with exemption for $500 family allowance) increased the price gap instead of reducing it.<\/p>\n\n\n\n

            7. Letters of Credit as a Speculation Tool<\/strong>
            Due to a guaranteed price gap (~30%), especially in personal imports, making them easy to obtain and resell.<\/p>\n\n\n\n

            8. Cash vs Cheque Gap<\/strong>
            Mainly due to restructuring the monetary base:<\/p>\n\n\n\n

              \n
            • Before 2024: cash \u2248 50%<\/li>\n\n\n\n
            • After September 2025: cash \u2248 25%<\/li>\n<\/ul>\n\n\n\n

              Result:<\/strong> Cash shortages, price gaps, and speculation on the dinar itself.<\/p>\n\n\n\n

              Conclusion<\/strong><\/h3>\n\n\n\n

              Price gaps (dollar \u2013 dinar \u2013 fuel) = hidden taxes<\/strong><\/p>\n\n\n\n

                \n
              • Paid by everyone<\/li>\n\n\n\n
              • Benefiting a few<\/li>\n\n\n\n
              • Not collected by the state<\/li>\n\n\n\n
              • Directly translating into inflation and poverty<\/li>\n<\/ul>\n\n\n\n

                Key Questions<\/strong><\/h3>\n\n\n\n

                Do we agree that the roots of inflation and price gaps are:<\/p>\n\n\n\n

                  \n
                • Uncontrolled public spending?<\/li>\n\n\n\n
                • Monetary financing?<\/li>\n\n\n\n
                • Distorted subsidies?<\/li>\n\n\n\n
                • Artificial price gaps?<\/li>\n<\/ul>\n\n\n\n

                  What Can Be Done?<\/strong><\/h3>\n\n\n\n

                  How can these \u201chidden taxes\u201d<\/strong> be formally collected through:<\/p>\n\n\n\n

                    \n
                  • The Central Bank<\/li>\n\n\n\n
                  • Or the government<\/li>\n<\/ul>\n\n\n\n

                    And then fairly redistributed to all citizens \u2014 through cash transfers, services, or reduced living costs \u2014 to compensate for the losses people currently bear without return?<\/p>\n\n\n\n

                    <\/p>\n","protected":false},"excerpt":{"rendered":"

                    Libyan businessman Husni Bey wrote in an article: The Central Bank of Libya cannot impose fees without an official decision signed by the Speaker of Parliament, Aguila Saleh \u2014 100,000%. In general, Libya\u2019s economic and financial crisis is behind the collapse of the dinar. Libya\u2019s current daily production stands at 1.35 million barrels of oil […]<\/p>\n","protected":false},"author":13,"featured_media":256315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[683],"tags":[628,613],"class_list":["post-256314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-articles","tag-central-bank","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256314","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=256314"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256314\/revisions"}],"predecessor-version":[{"id":256316,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256314\/revisions\/256316"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/256315"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=256314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=256314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=256314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}