Misbah Al-Akkari, Director General of Wafa Bank, has rejected reports claiming that Libya is seeking to borrow from the World Bank, describing the circulating information as entirely inaccurate.
In remarks to local media platform Sifr, Al-Akkari addressed recent criticism directed at the Central Bank of Libya over fluctuations in the US dollar exchange rate in the parallel market. He stated that although the dollar had experienced volatility, it has been declining steadily, adding that the full extent of the decrease would become clearer within the week.
Al-Akkari highlighted what he described as a sharp drop in several key revenue streams, including customs duties, domestic oil sales, telecommunications revenues, and sovereign oil income, despite improved oil production levels. He questioned the significant decline in oil revenues, noting that they stood at approximately $2 billion in February of last year but dropped to around $800 million in February this year. He said such a contraction raises important economic concerns.
He further revealed that more than 330,000 citizens have registered in the personal foreign currency allocation system, reflecting substantial demand for foreign exchange. However, he noted that monetary reform efforts are currently being pursued primarily by the Central Bank, suggesting that broader institutional coordination is needed to address structural economic challenges.
Al-Akkari emphasized that Libya’s financial fundamentals remain solid. He stated that the Central Bank holds foreign currency assets exceeding $100 billion, with total assets estimated at around $150 billion. On this basis, he dismissed reports of potential borrowing from the World Bank as baseless.
At the same time, he cautioned against using foreign reserves to finance consumption-driven spending, particularly during a period marked by political division and institutional fragmentation. Preserving reserves, he argued, is essential to maintaining macroeconomic stability and safeguarding the country’s long-term financial security.
