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Libya Observer
6 days ago
- Politics
- Libya Observer
At the Crossroads: Tetteh's Decisive Step or Libya's Missed Opportunity?
By Al-Mihdi Hindi, political activist In Libya, the political scene remains mired in a web of agreements that stir controversy more than they resolve issues, set against a backdrop of suspicion and hesitation surrounding every step toward holding elections. The Advisory Committee for Political Resolution has announced a constitutional amendment and new electoral laws. Yet, in reality, these outcomes seem far removed from the people's aspirations and closer to 'tailored' arrangements shaped by the interests of certain factions at the expense of others. The amendment to the Constitutional Declaration — supposedly the backbone of the political process — has instead become a new battleground. Supporters view it as a legal necessity, while opponents warn of 'playing with fire,' fearing it could be weaponized to sideline political rivals and empower others in a transparent game of power. Meanwhile, the electoral laws reflect deep polarization; the criteria for presidential and parliamentary candidacy appear custom-designed to serve narrow agendas, sidelining a Libyan public that still awaits genuine representation. The Advisory Committee has Not stopped there. It has put forward four possible solutions, the last of which is the formation of a Political Dialogue Committee or Constituent Assembly — an attempt to move beyond the tug-of-war between the House of Representatives and the High Council of State, and to reach a broader national consensus. This step followed a notable effort to gauge public opinion through online platforms and meetings with political parties, youth groups, and civil society, aiming to bridge the gap between the elite and the people. On the other side, the United Nations has acted with cautious diplomacy. Special Envoy Hannah Tetteh visited the capital, Tripoli, meeting with leaders of the High Council of State and the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibah. She announced a political plan that carries promises of progress but remains contingent on the approval of the UN Security Council, expected on August 21, 2025. Here lies the pressing question: Can this plan lead Libya out of its recurring cycles of crisis, or will it become yet another chapter in the long saga of agreements that fail to materialize? The Libyan people, weary of promises, watch anxiously as time slips away, political opportunities shrink, and the international agenda is consumed by other crises that risk pushing Libya further down the list of global priorities. If, at this historic moment, the interests of major powers fail to align with a genuine national will, the difficult question in Libya may shift from 'When will we vote?' to 'Do we still have anything left worth voting for?' Disclaimer: The views and opinions expressed in this article are those of the writer, and do not necessarily reflect those of the Libya Observer
Libya Observer
08-08-2025
- Business
- Libya Observer
The Libyan Dinar Between Central Bank Diplomacy and the Expansion of the Parallel Market: Cautious Optimism on the Horizon!
By Al-Mihdi Hindi, political economy analyst The Libyan landscape has recently witnessed rapid developments that may pave the way for a new phase of economic stability and offer the long-awaited boost of optimism for the Libyan dinar. With the bold steps taken by the Central Bank, signs of political progress, and the signing of oil agreements, the outlines of a brighter economic future for Libya are beginning to take shape. The Central Bank: Bold Steps to Regulate the Market The Central Bank of Libya is showing an increasing awareness of the urgent need to bridge the gap between the official exchange rate and the parallel market rate—an economic dilemma that has directly impacted citizens' daily lives. Recent hints about reducing the foreign currency tax to 10%, or potentially eliminating it altogether, signal a strong willingness on the part of the bank to make decisive moves. While such a move may cause a temporary increase in the value of the dinar, the ultimate goal remains achieving a sustainable and balanced exchange rate. Furthermore, the recent rapprochement between the Central Bank governor and currency exchange companies, through direct meetings aimed at improving conditions, reflects a new approach centered on cooperation with market players. If these efforts succeed, we may witness a positive shift in market dynamics, which would reinforce long-term confidence in the Libyan dinar. The Political Solution... The Secret to Economic Recovery Libya's economic challenges cannot be separated from its complex political landscape. In this context, diplomatic developments take on utmost importance. Leaks from the UN Special Envoy to Libya, Hanna Tetteh, suggest that the formation of a single unified government is imminent. A unified government could provide the necessary foundation for stability and allow for the implementation of comprehensive economic reforms. Such a government would be more effective, boost confidence in the country's ability to manage its resources, encourage the return of investments, and naturally enhance the value of the Libyan dinar. National Oil Corporation: The Return of Major Players The oil sector is the lifeline of the Libyan economy, and any positive developments within it have a direct impact on the country. In this regard, the National Oil Corporation's recent signing of an agreement with U.S. giant ExxonMobil to resume operations in Libya is a milestone. This step is not merely a financial investment—it is a powerful message from major international companies, expressing renewed confidence in Libya's security and economic outlook. Moreover, the signing of another agreement with Schlumberger to expand its services bolsters Libya's ambition to reach a production level of 1.5 million barrels per day once again, which would inject more hard currency into the state's coffers. Hope Exists… and Defending the Dinar Is Possible In light of these positive indicators, hope lies in the unification of efforts. The call for a unified government is not just a wish—it is a political and economic necessity that could open new horizons. Political unity is the key to improving economic conditions and strengthening the value of the Libyan dinar. There is no doubt that the Central Bank has the tools and the capacity to defend the dinar, but its efforts can only be fully effective within a stable political environment that supports its decisions. Disclaimer: The views and opinions expressed in this article are those of the writer, and do not necessarily reflect those of the Libya Observer
Libya Observer
31-07-2025
- Business
- Libya Observer
Between Cards and Credits: The Road Is Still Long!!
By Al-Mihdi Hindi, a political activist Libya continues to face numerous economic challenges, especially in the wake of the political and economic crises that have undermined its influence and stability. One of the most pressing issues is the elimination of fraudulent letters of credit and the misuse of personal-purpose bank cards, both of which pose serious threats by driving up the dollar exchange rate and fueling speculation. Additionally, the presence of two competing governments has led to massive public spending, further straining the value of the Libyan dinar. Letters of credit are financial instruments used to facilitate international trade. However, in the Libyan context—marked by opportunism and a disregard for public funds—these instruments have been manipulated into powerful tools of corruption. Instead of supporting trade, they have been exploited to weaken the economy and funnel money into the hands of powerful groups, whether they hold power through force or wealth. These "barons" have relied on forged documents and legal loopholes in the banking system to profit illegally. On another front, the buying and selling of personal-use bank cards by small and mid-level 'traders' has contributed to increased demand for dollars, thereby fueling the black market and placing more pressure on the Central Bank and the country's foreign currency reserves. These activities have given rise to a parallel market, dominated by a few "fat whales" and enabled by a school of "small fish" striving to secure a better future for themselves and their families through both legal and illegal trade. The recent measures taken by the Central Bank of Libya—such as tightening oversight mechanisms on banks and publishing detailed lists of companies that received letters of credit—are a good step toward promoting transparency and accountability in the banking sector. However, these efforts remain insufficient unless all legal loopholes are closed, punitive actions are taken against complicit banks, and the gap between the official and parallel markets is effectively narrowed. That remains the long road ahead, and we hope to see results as soon as possible. Disclaimer: The views and opinions expressed in this article are those of the writer, and do not necessarily reflect those of the Libya Observer
