Ali Al-Faresi is a Libyan economic and energy market analyst. He believes economic reforms without resolving political division will be temporary. He predicts 2026 will be a difficult year. This is due to continued reliance on what he called “patchwork solutions.”
Al-Faresi explained this in a statement to Al-Ain Al-Akhbaria newspaper. Exchange rate stability requires regular oil revenue flows. It also needs enhanced transparency in foreign currency distribution. Stricter control over the parallel market is crucial. Unifying fiscal and monetary policies is also necessary.
He added that the rapid rise of the dollar is primarily due to increased demand for foreign currency. This demand is for import purposes. Fears of restricted access to hard currency also contribute. Widespread speculation is another factor. Slow oil revenue flows to official channels also play a role.
Al-Faresi emphasized the importance of utilizing recent oil sector investment bids. Resources should be directed to support oil and gas. This aims to increase or maintain current export levels. Ensuring the stability of the National Oil Corporation is vital. This includes its management under Engineer Masoud Suleiman. Maintaining stable production, free from conflicts, is essential. Balanced relationships with all parties are also key.
He warned that a continued dollar appreciation will lead to increased inflationary pressures. It will also cause imported goods prices to rise. This directly impacts the purchasing power of citizens in Libya.