Libya’s central bank has concluded a nine-day round of consultations with the International Monetary Fund in Tunisia, focusing on economic reform, fiscal sustainability and measures to strengthen financial stability amid persistent domestic and external pressures.
The talks, led by Central Bank of Libya Governor Naji Issa and Deputy Governor Marai Al-Barassi, brought together senior central bank officials and representatives from key Libyan state institutions, according to a statement released Thursday.
The discussions reviewed Libya’s recent economic performance and examined fiscal, monetary and trade policies, as authorities seek to reinforce macroeconomic stability and advance long-delayed structural reforms.
Participants also assessed steps already taken to strengthen the financial system, improve transparency and sustain confidence in the banking sector, which has faced recurring pressures linked to political divisions, exchange-rate distortions and uneven public finances.
The consultations centered on a set of priorities that Libyan policymakers and the IMF have repeatedly identified as critical to stabilizing the economy. These include maintaining fiscal sustainability, encouraging private investment, diversifying income sources beyond hydrocarbons and improving governance across the banking and financial sectors.
At the close of the meetings, the IMF mission commended the central bank for measures aimed at preserving financial stability despite what it described as continuing challenges.
The Fund also pointed to progress in several technical areas, including the expansion of electronic payments, greater efforts toward financial inclusion, tighter regulation of exchange activities, and the use of monetary policy tools intended to support the Libyan dinar.
The consultations come at a time when Libya remains heavily dependent on oil revenues, leaving the economy vulnerable to global energy price swings and domestic production disruptions. Despite periods of improved export earnings, economists have long warned that the country remains exposed to structural weaknesses, including limited economic diversification, weak institutional coordination and fragmented public financial management.
The IMF has for years urged Libya to modernize its economic governance framework, improve budget discipline and strengthen the role of monetary policy in supporting stability. While the country has made progress in certain operational areas, broader reforms have often been slowed by political uncertainty and institutional fragmentation.
Libya’s banking system has also undergone gradual changes in recent years, with authorities pushing to expand digital financial services and improve oversight. Officials see these measures as essential to reducing inefficiencies in the payments system, improving access to financial services and curbing distortions in the foreign exchange market.
The central bank’s efforts to regulate exchange activity have drawn particular attention, as Libya has struggled in the past with gaps between official and parallel market rates, which have complicated trade, investment and consumer pricing. Improved regulation and monetary management are seen as key to preserving confidence in the national currency and easing inflationary pressures.
The IMF’s positive assessment is likely to be viewed by Libyan authorities as a measure of support for ongoing reform efforts, though analysts say much will depend on whether policy recommendations are translated into sustained implementation.
For Libya, the challenge remains not only to preserve short-term stability but also to lay the groundwork for more durable, broad-based growth in an economy still dominated by the oil sector.
The consultations in Tunis signal continued engagement between Libya and international financial institutions at a time when policymakers are under pressure to improve resilience, strengthen governance and position the economy for a more stable recovery.
