Businessman Hussni Bey believes the Central Bank’s announcement marks a significant organizational transformation. It aims to manage the foreign exchange market. This occurs through restructuring demand channels.
Bey made special statements to Al-Raed news network. This network is close to the Justice and Construction Party. The party serves as the political arm of the Muslim Brotherhood. He explained that regulating exchange companies and offices is crucial. Linking them to electronic systems facilitates oversight and tracking. This could partially limit market chaos. It might also reduce short-term speculation.
He affirmed that current measures address symptoms of the imbalance. They fail to tackle its economic roots. The continued sale of currency at a single, low, subsidized price is an issue. Restricted access has transformed the dollar into a rare commodity.
Bey stated the measures’ success depends on more comprehensive complementary policies. These include a gradual shift to a more flexible exchange rate. This would combat speculation and absorb shocks. All oil revenues must also go to the Central Bank. The fuel expenditure item needs to be addressed. Government deficit spending must stop. These points were highlighted in his statements.
He stressed the necessity of unifying the exchange rate for everyone. There should be no exceptions. This would eliminate rent-seeking opportunities. Citizens should be compensated directly for lost purchasing power. This is preferable to unfair currency support. Such support benefits only a select few.
He called for implementing market tools instead of administrative restrictions. This includes a regulated discount margin for exchange companies. A clear commission ceiling should also be set.
Bey indicated that dollar demand results from a structural gap. This gap includes rigid administrative currency pricing. Financial policy imbalances contribute to it. Weak confidence and a lack of local investment alternatives are also factors. He noted this situation has fostered a speculative rentier economy. Its costs are borne by society. This occurs through inflation. It also leads to reserve depletion and erosion of the dinar’s purchasing power.
In conclusion, Bey noted Libya possesses a competitive geographical advantage. This advantage remains unexploited. He attributed this to what he called “closed” policies. These policies have viewed currency as a means since 1971. They have not treated it as a commodity subject to supply and demand.