PM demands full disclosure from central bank

Libya’s Prime Minister Abdul Hamid Dbeibah has formally raised concerns with Central Bank Governor Naji Issa regarding discrepancies in the bank’s financial reporting for the first two months of 2025, according to an official statement released by the government and obtained by Libyan Express.

In his letter, Prime Minister Dbeibah noted that whilst the Central Bank reported a budget surplus of 9.6 billion Libyan dinars for January and February, the figure omits crucial revenue from the 4.4 billion dinar fee collected on foreign currency sales. When these funds are properly accounted for, the actual budget surplus reaches approximately 14 billion dinars, the Government Media Centre confirmed.

The Prime Minister’s analysis revealed significant disparities in foreign currency transactions. Whilst total foreign currency revenues stood at $3.6 billion during the reporting period, total expenditures and outstanding obligations reached $6.1 billion. This amount was distributed between $581.6 million processed directly through the Central Bank and $5.537 billion through commercial banks.

Dbeibah challenged the Central Bank’s assertion that increased foreign currency demand is primarily driven by public spending. “This represents part of the truth, but not the whole truth,” the Prime Minister stated, pointing out that public spending totalled just $1.5 billion against foreign currency revenues of $3.6 billion—creating a positive balance of $2.1 billion.

Of particular concern is the persistent transitional trade deficit of approximately $2.5 billion over the two-month period, which Dbeibah directly linked to monetary expansion within the economy. He also expressed alarm at the unprecedented surge in foreign currency demand during late 2024 and early 2025, calling for greater scrutiny of these transactions in accordance with Anti-Money Laundering Law No. 2 of 2005.

The Prime Minister emphasised that focusing exclusively on public spending as a means to control foreign currency demand “has not and will not lead to any solutions to stabilise the trade balance.” Instead, he identified systemic issues within the banking sector as the primary concern, particularly highlighting the continuous increase in commercial banks’ deposit liabilities that contribute directly to monetary expansion.

Concluding his letter, Dbeibah stressed that Libya is navigating a critical period requiring decisive action. He called on the Central Bank to implement measures ensuring complete transparency in foreign currency data and to submit monthly statements of the bank’s assets and liabilities directly to the Cabinet Council, as mandated by the Banking Law.

The exchange comes amid ongoing efforts to stabilise Libya’s economy following years of political uncertainty and division.​​​​​​​​​​​​​​​​