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Libya Energy Conference, London, 2 July

Libya Energy Conference, London, 2 July

Libya Herald5 hours ago

The Libyan British Business Council (LBBC) informed Libya Herald that it will be hosting the Libya Energy Conference which will be held in London on 2 July.
Held in partnership with National Oil Corporation (NOC) and Murzuq Oil Services Limited (MOSL), this high-level event will bring together senior leaders from Libya's energy institutions and the international business community for a day of strategic dialogue and insight to explore the latest developments, investment opportunities, and strategic partnerships.
The conference will open with a keynote address by Libya's Minister of Oil and Gas. The day will feature timely discussions on recent sector developments, investment priorities, and the evolving role of the private sector in advancing Libya's energy goals.
The LBBC says the event would be a valuable opportunity to engage directly with Libyan officials and energy executives as the country looks to deepen global partnerships and shape a long-term strategy for its hydrocarbons sector. Tags: energyLBBC Libyan British Business Counciloil and gas

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Libya Energy Conference, London, 2 July
Libya Energy Conference, London, 2 July

Libya Herald

time5 hours ago

  • Libya Herald

Libya Energy Conference, London, 2 July

The Libyan British Business Council (LBBC) informed Libya Herald that it will be hosting the Libya Energy Conference which will be held in London on 2 July. Held in partnership with National Oil Corporation (NOC) and Murzuq Oil Services Limited (MOSL), this high-level event will bring together senior leaders from Libya's energy institutions and the international business community for a day of strategic dialogue and insight to explore the latest developments, investment opportunities, and strategic partnerships. The conference will open with a keynote address by Libya's Minister of Oil and Gas. The day will feature timely discussions on recent sector developments, investment priorities, and the evolving role of the private sector in advancing Libya's energy goals. The LBBC says the event would be a valuable opportunity to engage directly with Libyan officials and energy executives as the country looks to deepen global partnerships and shape a long-term strategy for its hydrocarbons sector. Tags: energyLBBC Libyan British Business Counciloil and gas

Libya's economic reality: limited resources, liquidity challenges, inflation, and need for monetary base restructuring
Libya's economic reality: limited resources, liquidity challenges, inflation, and need for monetary base restructuring

Libya Herald

timea day ago

  • Libya Herald

Libya's economic reality: limited resources, liquidity challenges, inflation, and need for monetary base restructuring

Leading Libyan businessman Husni Bey told Libya Herald that the economic reality in Libya is limited resources, liquidity challenges, inflation, and the need for immediate monetary base restructuring. He said Libya is a country suffering from accumulated economic crises, evident in a clear misunderstanding of its financial resources, and the resulting impacts on the exchange rate of the dinar and inflation. The Reality of Libya's Financial Resources Bey said many Libyans believe that the country's resources are unlimited and that the Central Bank of Libya has the capacity to fully cover government spending. However, the reality shows that the state's resources are limited, and government deposits at the Central Bank are known and tied to its actual resources. Moreover, the actual dinars held by the Central Bank do not exceed its capital, estimated at only 1 billion dinars. The rest of the dinars are nothing but 'money creation to cover monetary deficits.' Funding the Deficit and Its Impact He explained that when the Central Bank resorts to funding the government deficit through creating new money, a process called 'monetary financing of the deficit,' this option comes at a high cost: the loss of the dinar's purchasing power and rising inflation rates, leading to excessive price increases. Criticisms and Risks Bey said he rejects the idea that government resources and the resources of the Central Bank of Libya are unlimited. The truth is that any financing of a budget deficit results in inflation, which citizens pay for directly—either through rising prices or the collapse of the national currency's value. In the same context, talk about the resignation of the Central Bank governor reflects the level of pressure and challenges faced, especially considering the failure of current economic policies. Reform Options To address this crisis, Bey said the Central Bank's Board of Directors has two main options: Option one: Be transparent with the people, explaining the economic situation openly, considering that not accepting the truth could lead to a greater collapse, characterized by hyperinflation and a breakdown of the exchange rate. Option two: Work on unifying the budget and public spending, reducing dependence on unplanned expenditures—particularly on salaries, fuel derivatives, subsidies, and operational expenses—which together exceed 174 billion dinars. There is also a need to allocate real resources to the development sector, including oil, gas, electricity, and infrastructure. Liquidity Problems and Their Causes The liquidity shortage is not new, Bey explained. He said it has recurred since 1980 and peaked in 2017 when 1,000-dinar cheques were exchanged for 700 dinars in cash (a 40% discount). The disappearance of the cash and liquidity is due to the structure of the present monetary base and the dynamics of the Central Bank—especially regarding the amount of debt owed to the public, holders of cash notes, and the legally required reserve (30%, roughly 31 billion dinars). The reserve held, he explained, unfortunately exceeds 59% or over 50 billion dinars, the reserve being over the legal limit by 65%, an excess or additional 19 billion dinars held as reserves by commercial banks at the Central Bank. The increase in frozen reserves by 19 billion making part of the monetary base thus exceed 50%, has led to a liquidity shortage, causing a loss of trust between banks and clients, undermining a healthy monetary cycle, and encouraging defensive behaviour in the financial system. Proposed Solution Bey says experts call for the restructuring of the monetary base, which has become an urgent necessity. This simply means changing the composition of the monetary base on which the Central Bank relies to create money, reducing dependence on the frozen additional reserves, and enhancing its role in injecting targeted liquidity into vital sectors—not just to cover cash withdrawals. Possible Measures Bey says the possible measures are: To encourage banks to invest their deposits effectively, with temporary sovereign guarantees, to liberalize the exchange rate to reduce speculative demand for foreign currency, and to relieve pressure on the dinar. Summary In summary, Bey says inflation and the collapse of the dinar can only be stopped by ending the fiscal deficit and refraining from financing it through monetary finance means: new money issuance. Restructuring the monetary base is essential, as it is key to improving liquidity and stabilizing the availability of cash and currency. Bey says these challenges require collective awareness and bold measures to ensure real economic stability that benefits the people and rebuilds trust in the national economy. As we can read from very recent developments, he points out, it seems the Central Bank of Libya has already begun reforms through the restructure of the monetary base in 2025. That's why we saw a relative cash easing before the Eid al-Adha holiday.

Libyan Italian Forum for Development and Reconstruction to be held in Benghazi from 25 to 26 June
Libyan Italian Forum for Development and Reconstruction to be held in Benghazi from 25 to 26 June

Libya Herald

timea day ago

  • Libya Herald

Libyan Italian Forum for Development and Reconstruction to be held in Benghazi from 25 to 26 June

The Benghazi Chamber of Commerce announced that the Libyan Italian Forum for Development and Reconstruction will be held in Benghazi from 25 to 26 June. The event is jointly organised by the Libyan Development and Reconstruction Fund, headed by the Hafter family, and the Libyan Italian Chamber of Commerce.‎ ‎Benghazi Chamber says the forum comes within the framework of strategic partnerships in the development and reconstruction sectors and national efforts aimed at advancing reconstruction and stimulating economic growth by launching this pioneering qualitative initiative represented in organizing the Libyan-Italian Forum for Development and Reconstruction. The initiative is also a practical embodiment of the Libyan state's orientation towards building effective international partnerships, attracting capital and value-added projects in a way that enhances the path of national reconstruction, and consolidates Libya's presence ‎‎as an attractive destination for investment in the region.‎ ‎Benghazi Chamber says this event represents a pivotal milestone in the Libyan-Italian cooperation process, and a unique opportunity to explore investment and partnership prospects in vital sectors, including infrastructure, energy, services, and technology. It highlights Libya as a promising destination regaining its position as an emerging regional hub for development.‎

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