Skip to main content

Author: LS

World Bank Calls for Unification of Libya’s Two Central Banks

Written by LS on . Posted in News. No Comments on World Bank Calls for Unification of Libya’s Two Central Banks

The World Bank has called for the unification of Libya’s two central banks in an initiative to improve the financial conditions of the war-torn country.

“The split in the central banks has stymied control over monetary and fiscal policy as well as performance,” the World Bank said on Friday in a report reviewing the monetary conditions of Libya.

Th report explained that the political conflict dividing the country has severely damaged the economy and led to destruction of human capital, livelihoods, basic services and infrastructure.

There are two central banks operating in the country. The Central Bank of Libya is under the control of the UN-recognised Government of National Accord in Tripoli, while its rival in Bayda is under the control of the eastern-based Interim Government.

The World Bank added that the split between the two central banks has stymied control over Libya’s monetary and fiscal policy in addition to impeding performance of full bank supervision. The World Bank explained that both central banks print money and issue currency without coordinating and in the absence of any overarching fiscal policy controls. As a result, the Libyan dinar has dramatically declined in value.

The report also noted that the international audit of the central banks is expected to take place in the near future and will be the first step towards the banks’ unification.

Boumtari requests the CBL to pay State obligations

Written by LS on . Posted in News. No Comments on Boumtari requests the CBL to pay State obligations

In a correspondence, the Ministry of Labor and Rehabilitation has requested the governor of the Central Bank of libya, Al-Siddiq Al-Kabeer, to allocate the fees imposed on sales of foreign exchange, with the value of LYD 14.2 billion (from January 1 to the end of August), in paying existing State obligations .

GNA’s Finance Minister Faraj Boumtari confirmed a surplus of foreign exchange sales revenues of LYD 12.8 billion.

During his speech, Boumtari warned on Sunday Siddiq al-Kabir of the consequences of continuing to use the same without government permission.

Sarraj opposes oil deal with Haftar

Written by LS on . Posted in News. No Comments on Sarraj opposes oil deal with Haftar

Libyan officials said Saturday that Prime Minister Fayez Sarraj would not support a deal with his primary rival in the country’s civil war to lift a monthslong blockade on its vital oil trade, according to Daily Sabah.

According to an official at his office, Government of National Accord (GNA) Prime Minister Fayez Sarraj opposed the final deal struck with Khalifa Haftar.

“The prime minister did not give his approval to the final version of the deal,” the official told The Associated Press (AP), speaking on condition of anonymity.

Mraja Gaith calling on Al-Kabeer to resume the dialogue

Written by LS on . Posted in News. No Comments on Mraja Gaith calling on Al-Kabeer to resume the dialogue

During a televised interview for Libyan WTV channel and Tabadul Platform, the current Deputy Minister of Finance, Mraja Gaith, has advocated the need for the unification of the Libyan dinar exchange rate, pointing out that the distorted exchange rate is one of the root causes of corruption in Libya.

“In order to reduce corruption, we have to standardize the exchange rate… Such issue is the sole prerogative of the Central Bank of Libya.” the Deputy Minister said.

” The black market’s approach with regard to business operations is wrong.” Mraja Ghaith said, while calling on the governor of the Central Bank of libya, Al-Siddiq Al-Kabeer, to resume a dialogue agian.

“Allowing set off, unifying the exchange rate, establishing credits and executing transfers will make traders resort to the bank instead of the parallel market, which would show a significant improvement.” he said.

” The one responsible for the suspension of the automated clearing for over a year must justify this.” he added.

Oil prices slip on potential return of Libyan output

Written by LS on . Posted in News. No Comments on Oil prices slip on potential return of Libyan output

Oil prices fell on Monday on the potential return of output from Libya as rising coronavirus cases also added to worries about global demand, although a tropical storm heading for the U.S. Gulf of Mexico limited losses.

Brent crude was down 33 cents, or 0.8%, at $42.82 a barrel by 0645 GMT, while U.S. crude was down 38 cents, or 0.9%, to $40.73 a barrel.

Workers at Libya’s major Sharara field have restarted operations, two engineers working there said, after National Oil Corporation announced a partial lifting of force majeure. But it was still unclear when production might restart.

“The market can ill afford more crude hitting the market,” ANZ analysts said in a note on Monday, at a time when coronavirus-related curbs have eroded demand.

Oil flat as Libya developments counter OPEC+ boost

Written by LS on . Posted in News. No Comments on Oil flat as Libya developments counter OPEC+ boost

Oil prices were unchanged on Friday, weighed after a Libyan commander said a blockade on the country’s oil exports would be lifted for a month, while supportive signals from an OPEC+ meeting lifted futures.

Brent LCOc1 fell 15 cents to settle at $43.15 a barrel, but rose 8.3% for the week. U.S. oil futures CLc1 rose 14 cents to settle at $41.11 a barrel, and gained 10.1% for the week.

Market sentiment fell on Friday after eastern Libyan commander Khalifa Haftar announced he would lift his blockade of oil output for one month. The blockade slashed Libyan production to just over 100,000 barrels per day now from around 1.2 million bpd previously.

UNSMIL, Libyan Economic Experts Review Libya’s Economic Reform Roadmap

Written by LS on . Posted in News. No Comments on UNSMIL, Libyan Economic Experts Review Libya’s Economic Reform Roadmap

The United Nations Support Mission in Libya (UNSMIL) convened virtually the third meeting of the Libyan Economic Dialogue

The meeting was chaired by Acting SRSG Stephanie Williams and brought together 29 Libyan economic experts along with representatives from UNDP and the World Bank, to discuss the progress in the economic track and review the policy road map developed as part of the Berlin process. This meeting was made possible by creating three hubs, in Tripoli, Benghazi and Sebha.

During the meeting, UNSMIL updated participants to the Libyan Economic Dialogue on the political process as well as on-going economic reform efforts, including the audit of the two branches of the Central Bank of Libya.

 Participants also exchanged on efforts required to address the deepening banking crisis as well as address vital services, decentralisation and needs arising from the COVID pandemic. Now that a reliable and safe remote medium was established, the Libyan Economic Dialogue agreed to meet more regularly to exchange information and develop a more integrated response to Libya’s deepening economic challenges.  

Al-Mismari: “a new technical committee to ensure fair distribution of oil revenues”

Written by LS on . Posted in News. No Comments on Al-Mismari: “a new technical committee to ensure fair distribution of oil revenues”

The exchange rate for citizens and government, according to the oil blockade lifting agreement, should be 1.3 the official price or 3.4 the adjusted price. The key issue is to have a standard price so that all citizens pay the same, the spokesman of the Libyan National Army (LNA), Ahmed Al-Mesmari said.

Al-Mismari added that the oil agreement and the joint technical committee overseeing oil revenues ends with the formation of a national unity government.

”It was agreed to form a joint technical committee to supervise oil revenues and ensure fair distribution of revenues that would take over the work until next December,” he said.

“There are corrupt Libyans trying to disrupt any project that saves the suffering of the citizen,” He stressed, adding that Turkey did not interfere in the oil dialogue and it will not be allowed to interfere.

According to Al-Mismari, an appropriate mechanism will be put to take advantage of the fee imposed on the exchange rate so that the fee does not go to mercenaries or militias.

CBL denies connection with agreements regarding distribution of oil revenues

Written by LS on . Posted in News. No Comments on CBL denies connection with agreements regarding distribution of oil revenues

The Central Bank of Libya (CBL), on Friday, denied its connection with any agreements or understandings related to the distribution of oil revenues following Khalifa Haftar’s announcement of the resumption of oil production and export.

The CBL said in a statement that it ‘followed up’ statements during the past hours, which were bandied about in the name of the bank and its governor, regarding alleged understandings related to the distribution of oil revenues.

It rejected attempts to involve the bank and its governor in these agreements, stressing that the CBL is a professional organization, which remains neutral.

It concluded that it is a sovereign institution which works within the realms of legality and controls, distancing itself from all and any political disputes.

Libya’s Sarraj Balks at Deal With Haftar to Restart Oil Output

Written by LS on . Posted in News. No Comments on Libya’s Sarraj Balks at Deal With Haftar to Restart Oil Output

Libyan Prime Minister Fayez al-Sarraj didn’t accept a deal reached between his deputy prime minister and rival military commander Khalifa Haftar to lift an oil blockade, a top aide said, casting further doubt on an imminent resumption of production, according to Bloomberg.

Haftar had earlier announced he would lift the blockade that his eastern forces imposed on fields and ports in January. Deputy Prime Minister Ahmed Maiteeq, who is often at odds with Sarraj, had made the agreement last week at a meeting in Sochi, Russia, with Haftar’s son and representatives from eastern Libya. He was meant to visit Sirte, a city by held by Haftar, to sign the agreement on Friday but was blocked by other members of his government.

Maiteeq said in an interview that he thought Sarraj would embrace the deal, but the senior aide, who can’t be named because of internal policy, denied that in a response to questions.

Bloomberg added that Libya’s National Oil Corporation had denounced what it called parallel talks in a statement late Thursday and said it wouldn’t lift force majeure until Russian mercenaries who support Haftar withdraw from oil installations.

Maiteeq said he wanted the mercenaries out of the country, but the issue didn’t come up in the talks with rival Libyans to restart production. The agreement is meant to set up a commission to distribute oil revenues more fairly, a key demand by Haftar that had led him to shut down the fields as his campaign to capture Tripoli — the western coast capital where Al-Sarraj’s Government of National Accord is based — flagged in January.

Sarraj announced earlier this week that he will step down by the end of October to make way for a new government, raising the stakes for rivals within his camp who want to replace him.