Helmi Al-Gmati, Professor of Economics, wrote:<\/p>\n\n\n\n
The Central Bank\u2019s success in restoring the flow of cash dollars into Libya after years of interruption is not merely a routine technical measure, but a step that reflects the recovery of an important monetary policy tool that had been absent from the scene.<\/p>\n\n\n\n
We are facing a genuine attempt to reorganize the exchange market through the injection of cash dollars\u2014a move that carries both economic and psychological dimensions.<\/p>\n\n\n\n
Here, the cash dollar does not represent liquidity alone; it represents confidence. A large part of Libya\u2019s market crisis was not due to a shortage of foreign currency as much as it was the result of weak trust in banking channels and the restrictions imposed on access to them.<\/p>\n\n\n\n
Therefore, providing dollars directly helps reduce the gap between the official and parallel markets and breaks one of the key mechanisms of the informal market\u2019s dominance.<\/p>\n\n\n\n
In the short term, we can expect a decline in the dollar\u2019s price on the parallel market, reduced speculation, and an overall psychological improvement in the market, which may somewhat reflect on the stability of imported goods prices.<\/p>\n\n\n\n
However, from a scientific economic perspective, it must be emphasized that this effect remains temporary unless the root causes of the problem are addressed. Demand for the dollar in Libya is not purely for consumption; it is a mix of hedging, hoarding, speculation, and financing the shadow economy\u2014types of demand that cannot be resolved by cash injections alone.<\/p>\n\n\n\n
In the medium term, continued dollar flows may achieve a degree of relative stability. But if these flows stop, the parallel market is likely to re-emerge, perhaps even stronger due to suppressed demand.<\/p>\n\n\n\n
In the long term, the decisive factor remains the ability of economic policies to control public spending, unify the budget, and reduce the informal economy. Without this, any exchange rate stability will remain fragile and prone to collapse.<\/p>\n\n\n\n
For citizens, the shift from card-based systems to receiving cash dollars represents a significant change in economic behavior. Cash dollars provide greater flexibility in use and eliminate many of the restrictions and costs associated with cards like Visa. Additionally, a large portion of this money will be re-injected into the market through resale, increasing supply and lowering prices.<\/p>\n\n\n\n
On the other hand, selling dollars to improve income remains a temporary solution and does not address the core issue of weak purchasing power and the lack of diversified income sources.<\/p>\n\n\n\n
What is happening today is an intelligent and impactful step, but it remains a tactical tool rather than a strategic solution. It can calm the market, but it is not sufficient on its own to ensure lasting stability.<\/p>\n\n\n\n
Cash dollars can organize the market\u2014but only economic reform can truly stabilize it.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Helmi Al-Gmati, Professor of Economics, wrote: The Central Bank\u2019s success in restoring the flow of cash dollars into Libya after years of interruption is not merely a routine technical measure, but a step that reflects the recovery of an important monetary policy tool that had been absent from the scene. We are facing a genuine […]<\/p>\n","protected":false},"author":13,"featured_media":256479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[683],"tags":[613],"class_list":["post-256478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-articles","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256478","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=256478"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256478\/revisions"}],"predecessor-version":[{"id":256480,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256478\/revisions\/256480"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/256479"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=256478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=256478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=256478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}