Libya’s financial outlook has come under renewed scrutiny after the Central Bank of Libya (CBL) reported foreign currency sales exceeding $1 billion during the first eight days of January 2026, while oil revenues transferred to its accounts stood at just $155 million over the same period. The sharp imbalance has triggered widespread questions over fiscal sustainability and resource management.
The figures were released as local markets prepare for a high-consumption period ahead of the holy month of Ramadan, traditionally marked by increased demand for imported food and consumer goods.
In an official statement, the CBL said oil revenues recorded between the start of January and the eighth day of the month amounted to around $155 million. During that time, total foreign currency sales surpassed $1 billion. The bank said it continues to supply foreign exchange to meet market needs, ensure the availability of essential commodities, and support a degree of financial stability, particularly in anticipation of rising seasonal demand.
However, economists have warned that the gap between income and spending reflects deeper structural problems. Khaled Al-Habbawi, a professor of economics at Omar Al-Mukhtar University, described the disparity as a negative and dangerous indicator for Libya’s public finances.
Speaking to Al-Ain Newspaper, he said spending nearly seven times more than incoming revenues within just over a week sounded alarm bells over long-term sustainability.
While part of the surge may be linked to seasonal demand before Ramadan, Al-Habbawi stressed that it also exposes Libya’s heavy reliance on oil as its primary source of income. He pointed to the extensive use of letters of credit for imports, particularly by large numbers of traders, as a major driver of foreign currency depletion with limited impact on domestic production or development.
Al-Habbawi argued that the central bank’s role should extend beyond facilitating spending to ensuring financial stability through closer coordination with fiscal and trade authorities. He called for diversifying income sources, supporting local production, and reducing dependence on imports.
The economist also urged the reactivation of state mechanisms for importing basic goods, warning that without structural reforms, Libya’s financial imbalance could deepen, increasing risks to economic stability in the medium and long term.
