Central Bank Operations - Fiscal Year 2026
Libya
Domestic Liquidity Management under an Exchange Rate Peg (May 4-8)
The Central Bank of Libya (CBL) faces challenges including operationalizing the reunification of the West and East central bank, fiscal dominance, and widening parallel exchange rate market premium. The mission recommended completing without delay CBL’s monetary policy framework with an active domestic monetary policy implementation. This includes absorbing excess liquidity by issuing an interest-bearing liquidity absorbing instrument in line with prevailing Islamic finance regulations.
