Libyan PM Aldabaiba and CBL Governor Discuss Financial Reforms Amid Currency Crisis

With the background of global prices of a barrel of oil (Brent Crude) falling to US$ 55, negatively affecting the Libyan state’s main revenue, the Libyan dinar on the black-market at one stage yesterday falling to LD 8.40 per US$ putting further pressure on rising commodity prices, and the continuing cash crisis at Libyan banks, Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba, received at his Tripoli Office the Governor of the Central Bank of Libya (CBL), Naji Issa, yesterday.

The government said the meeting was to follow up on the financial situation and the efforts made to ensure the provision of cash and improve the level of banking services.‎

‎The meeting discussed coordination with the Ministry of Economy and Trade on the opening of credit facilities, in a way that contributes to supporting economic stability, meeting market needs, reducing speculation in the parallel market and currency smuggling abroad, and tightening procedures and controls on money laundering and terrorist financing.‎

‎During the meeting, the Prime Minister affirmed his full support for the efforts of the Central Bank of Libya in overcoming the difficulties, stressing the importance of continuing to work with the "Your Salary is Instantaneous" programme, not only to facilitate citizens to obtain their salaries without delay, but also to reduce waste in the First Chapter of the budget, while stressing the obligation of all sectors to implement it.‎

‎For his part, the Governor affirmed the CBL's commitment to solving the liquidity problem, and taking the necessary measures to ensure its regularity and improve the banking services provided to citizens.‎

Governor Issa’s promises unfulfilled
It will be recalled that CBL Governor Naji Issa had promised in August this year that the LD will strengthen to under LD 7 per dollar on the black-market and that the cash crises will end by 1 October this year. Neither aims have been achieved.

Part of the CBL’s wider reform measures
The various ongoing efforts by Naji Issa come within his CBL’s wider effort to reform Libya’s economic, monetary, fiscal and financial system to reduce money laundering, reduce the grey economy and tax evasion, reduce demand for the US dollar in the black-market and strengthen the Libyan dinar.

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