“Al-Kabir” addresses “Al-Dabaiba” and calls on everyone to rationalize spending, stop parallel spending, and approve a unified budget for the entire Libya

The Governor of the Central Bank of Libya, “Al-Siddiq Al-Kabir,” during his address to the Head of the National Unity Government, “Abdul Hamid Al-Dabaiba,” called on everyone to work together and approve the necessary economic and financial policies to get out of the stifling crisis, by stopping parallel and anonymous spending, and approving a unified budget for the entire Libyan territory, and Rationalizing spending in a way that preserves the state’s reserves and the rights of future generations, as well as diversifying sources of income, enhancing the role of the private sector, and reducing excessive dependence on foreign imports of consumer goods, which exceeded 80%.

The “Governor” stressed that economic policies require proper direction of the state’s financial resources to ensure the sustainability of a decent life for all Libyans.

Al-Kabeer added that oil is still the only source of state income and the main financier of the general budget with more than 95%. The ill-considered expansion in public spending over the past years amounted to 420 billion dinars, in which consumer spending accounted for more than 95%, at the expense of development spending. This put pressure on the exchange rate of the Libyan dinar, as salaries jumped from 33 billion dinars in 2021 to 65 billion dinars in 2023.

“Al-Kabeer” explained that it was observed that the required quantities of foreign exchange increased and the exchange rate rose starting from the fourth quarter of 2023, which made it difficult for the Central Bank to defend the current exchange rate of 4.85 dinars to the dollar, stressing that the process of reducing the exchange rate of the Libyan dinar from 1.3 dinars to the dollar to 4.85 dinars to the dollar was the result of successive crises since 2013 and was not an option for the Central Bank.

“Al-Kabeer” indicated that the reduction process carried out by the bank brought about clear stability during the years 2021 and 2022 at the macroeconomic level and balance in the general budget and balance of payments, and as a result the exchange rate of the Libyan dinar stabilized, adding that the repeated arbitrary suspension of oil, the imbalance in financial and trade policies, and the exacerbation of The deficit in the balance of payments led to the depletion of a large portion of the state’s foreign exchange reserves.

Al-Kabeer also added that oil production and exports should increase in the short and medium term, and that the priority of spending should be directed to investing in comprehensive development.

The post “Al-Kabir” addresses “Al-Dabaiba” and calls on everyone to rationalize spending, stop parallel spending, and approve a unified budget for the entire Libya appeared first on Tabadul Channel.

You can also read the news in the source from here