The Government of National Unity (GNU) has commented on the Central Bank of Libya’s report regarding the scale of spending by the parallel government, highlighting that the parallel expenditure—amounting to 59 billion Libyan dinars outside official arrangements—is a direct cause of the dinar’s depreciation and rising prices, which negatively affect citizens’ purchasing power.
The GNU explained that this spending, which is five times the development allocations of the GNU (12 billion dinars), exceeds legal procedures and places unjustified burdens on the general budget. It further clarified that the official expenditure, totaling 123.2 billion dinars, has been distributed among salaries, operational expenses, and development projects across various regions.
The GNU stressed that this parallel spending burdens the national economy, exacerbating the balance of payments deficit and weakening the Central Bank’s ability to protect the value of the dinar. It emphasized the need to unify efforts under the umbrella of the state to promote equitable distribution and sustainable development in Libya.
Earlier, the Central Bank of Libya announced a 13.3% devaluation of the dinar against foreign currencies, setting the new exchange rate at 5.5677 dinars per US dollar. It said that it was compelled to reconsider the dinar’s exchange rate due to the lack of prospects for unifying the dual expenditures between the two governments.
According to the Bank’s statement, total foreign assets stand at over $94 billion, including $84 billion in reserves managed by the Bank. It affirmed its commitment to safeguarding these reserves despite the significant challenges and the volatile environment in which it operates.
