IMF Staff Country Reports

Libya: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Libya

July 11, 2024

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Format: Chicago

International Monetary Fund. Middle East and Central Asia Dept. "Libya: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Libya", IMF Staff Country Reports 2024, 206 (2024), accessed November 21, 2024, https://doi.org/10.5089/9798400281075.002

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Also available in: العربية

Summary

The 2024 Article IV Consultation highlights that Libya remains a fragile state trapped in political uncertainty, but the episodes of active conflict have become less frequent. The outlook continues to be dominated by the dynamics of hydrocarbon production. Libya needs to manage public expenditure consistent with its macroeconomic constraints, and requires proper budgeting to avoid procyclical spending, and improve coordination between fiscal and monetary policies. Completing the central bank reunification remains key to maintaining financial stability, along with reforms on strengthening monetary policy and updates to the banking supervision framework. The baseline projection is for declining fiscal and external balances over the coming years, in line with a projected decline in global oil prices. The Central Bank of Libya is expected to maintain the current stock of international reserves, and the country will continue to have no public debt as conventionally understood. However, the balance of risks is tilted to the downside, and uncertainty remains high due to the continuing political stalemate and possible geopolitical spillovers.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Exchange rates, Exchange restrictions, Foreign exchange

Keywords: Africa, Anti-money laundering and combating the financing of terrorism (AML/CFT), Balance of payments reason, Certificate of payment, Clearance certificate, Exchange rates, Exchange restrictions, Global, METAC mission, Staff's assessment

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