Benghazi – Dr. Hilmi Al-Qamati heads the Economics Department at Benghazi University. He warned against oversimplifying the national economic crisis. Attributing the crisis solely to oil price fluctuations is an incomplete view of reality.
Al-Qamati highlighted the true dilemma of the national economy. It stems from poor policies. He also cited the ongoing institutional division. This division has hampered the creation of unified policies. These policies are essential for addressing the challenges. These challenges caused the country’s economic crisis.
Al-Qamati spoke to the Libyan News Agency. He revealed a dangerous overlap of powers. This overlap exists between monetary and fiscal policies. He noted the Central Bank of Libya has exceeded its technical role. Its role is to manage monetary stability. The bank has expanded into executive authority responsibilities. This creates conflicting responsibilities. It leads to contradictory policies. These policies worsen structural distortions. He added that documentary credits have changed significantly.
They were once a way to secure market needs. Now, they are an outlet for financial and administrative corruption. This corruption aims for quick profits. It exploits the difference between official and parallel foreign currency rates.
Expert Al-Qamati warned about improved oil revenues. Without structural reform, these revenues will be squandered. They will lead to unsustainable consumer expansion. He also warned of declining global oil prices. Such a decline would put the national economy under severe inflationary pressure. This pressure threatens social stability.
He emphasized that national economic stability requires immediate unity. This unity applies to financial and monetary institutions. Monetary policy tasks must be separate from fiscal policy tasks. Transparency must be enhanced. Strict oversight is needed for the documentary credit system. This ensures these credits benefit the country.