Libya’s Al-Kabir Discusses Financial Sector Challenges in Washington

Libya's Al-Kabir Discusses Financial Sector Challenges in Washington
Libya's Al-Kabir Discusses Financial Sector Challenges in Washington

The Governor of the Central Bank of Libya (CBL), Al-Sadiq Al-Kabir, held discussions with the US Federal Reserve Board (FRB), the International Monetary Fund (IMF), and the World Bank regarding the challenges confronting the financial sector.

The CBL’s media office revealed that the meeting, which was conducted in Washington with the participation of several central banks and financial institutions globally, addressed the challenges facing the financial sector. Specifically, the proposed policies in light of technological developments in the field of payments and digital currencies, climate change, and crises were explored.

The meeting emphasised Libya’s proactive role in confronting global financial trends and understanding the implications these trends might have on its financial sector. By involving itself in these discussions, Libya is strategically positioning itself to effectively navigate the changing landscape of international finance.

Notably, the IMF disclosed that Libya’s foreign reserves amounted to $82 billion at the end of 2022. Dmitri Gershenson, the Head of the IMF mission to Libya, noted in an interview with CNBC Arabia that the frozen assets have totaled $70 billion since 2011.

Gershenson lauded the role of the CBL in preserving these reserves despite the ongoing turmoil, thus providing a cushion against economic shocks for the Libyan economy. He also brought to light the economic contraction Libya experienced in 2022, with its Gross Domestic Product (GDP) shrinking by 11%.

However, the IMF mission Head holds a more positive outlook for 2023. He projected a 19% growth in Libya’s local economy for the upcoming year, suggesting potential economic recovery amidst the ongoing geopolitical and financial challenges.

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