The Central Bank of Libya has welcomed the statement issued by the International Monetary Fund (IMF) delegation following the conclusion of preparatory meetings for the 2025 Article IV Consultations in Tunis. The statement addressed recent economic developments and reform priorities in Libya. The IMF commended the September agreement to resolve the leadership dispute within the Central Bank as a significant milestone, enabling enhanced governance and stability within the financial sector.

The IMF highlighted the CBL’s efforts to narrow the exchange rate gap between the official and parallel markets and to enhance liquidity, emphasizing the importance of fiscal discipline through the adoption of a unified 2025 budget to optimize resource allocation. Discussions underscored the need for governance reforms and the development of monetary tools to ensure the efficient functioning of financial markets.

Moreover, the IMF stressed the urgency of structural reforms, particularly in addressing energy subsidies, which account for 20% of GDP, and fostering private-sector-led growth to reduce reliance on the oil sector. The CBL reaffirmed its commitment to collaborating with the IMF and other international and regional partners to implement these reforms, strengthen the resilience of the financial sector, and diversify the economy.

For further details, please refer to the official IMF statement here:www.imf.org/en/News/Articles/2024/12/06/pr24453-libya-imf-staff-concludes-visit