In a proactive move to enhance Libya's economic landscape, the Central Bank of Libya (CBL) and the Ministry of Economy and Trade have established a joint working group aimed at studying market needs for goods and services. This decision was made during a meeting on November 19, 2024, between CBL Governor Naji Issa and Minister of Economy and Trade Mohammed Al-Hawaij. The group will consist of economic researchers tasked with encouraging local industries and submitting applicable proposals to address economic fluctuations and achieve price stability, aligning with the CBL's objectives. [41ab0530]
This collaboration comes on the heels of the US's recent endorsement of the CBL's new Board of Directors, emphasizing the importance of the bank's independence and technocratic integrity for Libya's stability. The US Embassy welcomed this governance change on October 23, 2024, following the House of Representatives' approval of the new board on October 21, 2024. [8b1ca1d3]
The CBL has been making strides towards transparency, having updated its monthly monetary, financial, and banking data on October 20, 2024. This move is crucial for restoring confidence in Libya's financial system amid ongoing economic challenges. [d0d0a2e0]
The US's support also acknowledges the role of the United Nations Support Mission in Libya (UNSMIL) in facilitating the governance transition at the CBL, which has faced leadership confusion in the past. [8b1ca1d3]
Furthermore, the CBL resumed operations on August 18, 2024, after the release of Musab Emsalem, its Director of the Information Technology Department, who had been kidnapped. This incident underscored the security challenges that the bank faces amid Libya's broader political instability. [008b5504]
In light of these developments, the Head of the Presidential Council, Mohammed Menfi, has called for the cancellation of the tax on foreign currency purchases to combat inflation affecting citizens' salaries and savings. [d7b1288a]
The formation of the joint working group is seen as a critical step towards addressing the economic needs of Libya, especially in the context of warnings from the International Crisis Group about the potential for economic collapse. The collaboration between the CBL and the Ministry of Economy is expected to foster a more resilient economic environment. [fb06f899]