Al-Hibri: New exchange rate will vastly ease the liquidity crisis on the Libyan people
Vice president of the CBL predict that official exchange rate and policy reform will see the success of 90% in the next year
The Governor of the parallel Central Bank of Libya (CBL) and vice president of the board of directors of the CBL Ali Al-Hibri expressed his optimism about an economic boost that will follow the newly modified exchange rate.
In a televised interview on 218 TV, Al-Hibri said that the CBL will see success in monetary policies by at least 90% in 18 months.
The governor also said that the current exchange rate of the Libyan dinar to foreign currencies isn’t “balanced” so modifying it was a very important step in the direction of economic reform for the country.
“Selling US dollar to Libyans won’t be in cash at this stage, rather by bank cards and transfers. The cash crisis is expected to be over by January 2021. Prices could go up relatively, but the smuggling of commodities would be limited.” Al-Hibri explained.
He reassured that new banking policies and reform will lead to the demise of the black market activities in exchange rates, which have kept the country in economic limbo for years now.
He said activating wife and children’s allowance will start January as well with the support for medicines and fuel kept intact, adding that prices can go down up to 33% in the future.
Al-Hibri confirmed that the prices of lands and properties will witness a big drop of 50 – 60 % of their value when the exchange rate of the Libyan dinar is fixed against the US dollar on next January 3.
“The fluctuation of Libya’s GDP made the modification of exchange rates inevitable, plus the fact that it would help end corruption. Central Bank’s technical committee will report weekly to the board of directors to assess the ramifications of the new exchange rate. It will also issue a statement every six weeks on the monetary policy of the Central Bank. There will be also an assessment of the black market’s activity to compare exchange rates. A report on instructions for selling foreign currencies will be issued this week.” Al-Hibri further explained.
He added that in light of policy reform, the CBL will begin granting licenses for opening private exchange companies in the first quarter of 2021 and ending circulation of certain categories of banknotes.
The Governor reassured the public that the reunified board of directors continue to hold meetings to assess the exchange rate and make necessary reform and changes needed to accommodate the market in the best interest for the Libyan people.
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