Tripoli – Academic Ali Al-Ghweil has said that the Central Bank of Libya faces complex economic and financial challenges. He highlighted political and institutional divisions, heavy reliance on oil revenues, and a widening gap between supply and demand for foreign currency. These factors are placing pressure on monetary policy, reserve management, and the exchange rate of the dinar.
Al-Ghweil told Sputnik that political divisions directly affect the management of monetary policy and foreign reserves. He noted that Libya’s dependence on oil revenue exposes the economy to price fluctuations and disruptions in production or exports.
He pointed out that rising public spending and growing pressure on public finances require careful liquidity management and maintaining monetary stability. This comes as the amount of currency circulating outside the banking sector increases, and the gap between supply and demand for foreign currencies continues to widen.
Al-Ghweil said these challenges directly affect the banking sector. He noted a reduced ability of banks to expand financing and investment and continued liquidity pressures at certain times. These issues have undermined customer confidence in banking services, limiting the sector’s ability to support economic activity.
He also highlighted that cyberattacks have become a major threat to banks worldwide, and Libya is no exception. As electronic services and digital transformation grow, risks include database breaches, theft of customer information, phishing, and denial-of-service (DDoS) attacks that could disrupt electronic systems or services.
Regarding the exchange rate, Al-Ghweil observed that any increase in demand for foreign currency or declining market confidence could intensify pressure, especially in the parallel market. He underlined that exchange rate stability depends heavily on the size of foreign reserves, the continuity of oil revenue flows, and the effectiveness of Central Bank policies in market management and financial stability.