The Monetary Policy Committee held its first meeting of 2026 amid a delicate economic environment characterized by political instability and weak fiscal discipline, which imposes increasing challenges on the Central Bank of Libya in maintaining monetary stability and exchange rate stability.

The meeting reviewed the assessment of measures taken during 2025, developments in the Libyan economy, the use of foreign currency, and anticipated challenges for 2026.

The committee also addressed the regulation and supervision of exchange activities, as well as the readiness of exchange offices and companies to operate in order to enhance discipline and transparency in the foreign currency market.

Additionally, the committee examined technical reports and risks associated with the expansion of public spending and the rise of public debt, and their impact on the level of reserves.

In light of these findings, the committee approved a package of reforms in monetary and trade policy aimed at supporting market stability and exchange rates, containing the parallel market, protecting reserves, and enhancing the effectiveness of monetary policy in 2026. The recommendations will be presented to the Board of Directors of the Central Bank of Libya at its first meeting of the year.