Central Bank unification is a national demand that everyone should call for: CBL official

Musbah Akkari, former chairman of Jumhuriya bank, head of the Central Bank of Libya (CBL) Reserves Department and currently member of the Libyan Dinar Exchange Rate Adjustment Committee warned that “the unification of the central bank is a national demand that everyone should call for,” noting the need for “the government to reconsider the exaggerated consumer spending.”

Posting on his social media site on Thursday, Akkari said there is a need to “revitalize the Central Bank’s board of directors and the exchange rate committee to consider the possibility of adjusting the exchange rate,” expecting this to lead to a decrease in the prices of goods and services. The devaluation of the Libyan dinar has shot prices sky-high, especially for goods imported with hard currency.  The public complain that their incomes cannot keep up with prices after the devaluation.

Akkari pointed out that the exchange rate of the dollar in the parallel (black) market is 4.9 dinars to the dollar, down by 25% in cash, and 5.05 dinars for cheques, wondering, “How can the dollar exchange rates decrease with these numbers and the prices of goods rise.”

He also stated that the reason for the current rise in the prices of goods and services is the increase in their prices abroad (imported inflation), in addition to the high cost of transportation.

Akkari’s post is seen as a message and pressure on the current CBL Governor who is seen as a conservative when it comes to adjusting the dinar exchange rate. Akkari wants to strengthen the dinar gradually from its current rate to counter inflation.