The Central Bank of Libya (CBL) has reported a significant disparity between foreign currency sales and oil revenues in mid-March, placing increasing strain on the nation’s reserves and economy.
Between March 1st and 17th, 2025, the CBL sold $2.3 billion in foreign currency, while oil revenues for the same period amounted to only $788 million. This stark contrast highlights the growing pressure on Libya’s financial stability.
According to a CBL statement released on Monday, $1.1 billion was allocated for personal needs, and $1.2 billion was used to cover letters of credit. This trend underscores the robust demand within the foreign exchange market, particularly in light of dwindling oil revenue.
The CBL has expressed concerns about the “great difficulties” it faces, citing the decline and delay in oil revenues as a primary challenge. This revenue shortfall, coupled with a persistent increase in public spending due to fragmented fiscal governance, is intensifying the demand for foreign currency and hindering economic stability efforts.
Despite these challenges, the CBL has reiterated its commitment to ensuring a regular supply of foreign currency to meet local market demands, while simultaneously safeguarding financial sustainability and foreign currency reserves.
Data from January and February 2025 further illustrate the escalating trend, revealing a record $5.53 billion in foreign currency usage, a staggering 395 percent increase compared to the same period in the previous year. Personal spending accounted for 53.7 percent of this usage, while documentary credits made up 43.1 percent.
The combination of surging foreign currency demand and declining oil revenue is placing significant pressure on Libya’s macroeconomic balance, signaling potential future economic challenges.
SL/ac/Sf/fss/abj/APA