The Central Bank of Libya’s reconstituted Monetary Policy Committee called for a unified state budget and closer coordination of economic policies to address a widening exchange rate gap and mounting inflation pressures. The recommendations followed the committee’s first meeting on Nov. 10, 2026, which examined the divergence between official and parallel market exchange rates and the erosion of citizens’ purchasing power.
The budget should rest on realistic estimates of available resources and reflect both the state’s financing capacity and the economy’s capacity to absorb spending. This would support tighter control of public expenditure and address fiscal imbalances. Coordination among monetary, fiscal and trade policies, together with engagement with legislative and executive authorities, should target the underlying sources of economic imbalances.
Exchange rate policy should maintain the stability of the official rate while narrowing its gap with the parallel market rate. An integrated set of measures should address the causes of that gap and ease pressures on foreign currency demand. Policy outcomes should be monitored and evaluated against clear, measurable performance indicators.