Dr. Nasser Saidi’s comments on Libya’s central bank in the backdrop of the two rival governments’ disagreement appeared in an article in The National titled “Can Libya function without a central bank?” published on 14th September 2024.
The comments are posted below.
Libya’s two rival governments have not yet reached an agreement on who would lead the country’s central bank. Any delays or failure could plunge Libya’s economy into a deeper crisis as it reels from a liquidity shortage and high levels of inflation.
The Central Bank of Libya is the only authorised entity to manage the country’s oil revenue, which accounts for more than 90 per cent of the total government income, and is responsible for paying state salaries nationwide.
“The central bank’s role is strategic – not only as the manager of international transactions, including oil revenue and international reserves, but also as the government’s bank for payments, including salaries for civil servants and the military – which is now a question mark,” said Nasser Saidi, president of Nasser Saidi and Associates.
“Impeding the activities of CBL threatens the very livelihood of Libya, with a loss to all parties and the population … any delays in payments of salaries will trigger further disarray, with an economy already struggling with liquidity shortage,” he told The National.
