The statements of the former governor of the Central Bank of Libya, Al-Siddiq Al-Kabeer, regarding the “oil for food” scenario, sparked controversy in the country, amid great disapproval from economists and politicians.
Regarding this scenario, Dr. Mohsen Al-Dreja, former head of the Libyan Investment Authority, confirmed that “the idea of issuing a resolution by the UN Security Council adopting the oil-for-food mechanism in Libya is unlikely at the present time.”
Al-Darija said in a post on Facebook, “The ideal solution lies in reaching an agreement between the House of Representatives and the Supreme Council of State to appoint a new professional management for the Central Bank of Libya, which would contribute to resolving the financial crisis that the country is going through.”
The former governor of the Central Bank, Al-Siddiq Al-Kabeer, had previously said, “International institutions have stopped dealing with Libya, and if the current situation continues, he fears the oil-for-food scenario.”
Political analyst Hussam al-Din al-Abdali said in circulated statements, “The former governor, al-Siddiq al-Kabeer, is trying to exaggerate the situation to give the public the impression that changing him will lead to the loss of the Central Bank of Libya’s reserves and we will reach the stage of oil for food, but he forgot and pretended to ignore that these statements confirm the weakness of his position that he was the reason for the inflation of the value of the Libyan dinar, and the reason for the wrong policies that are leading the country to the abyss.”
Al-Abdeli stressed that “the issue of the decline in the value of the dinar against the dollar is a matter that falls within the responsibility of the current governor, who must create real solutions, including opening personal items systems and adding the dollar to the market, so that there is no shortage of dollars for the people, because in the event of a shortage of currency, there will be momentum in the parallel market and this will lead to a shortage in the availability of dollars, and this shortage will lead to an increase in the value of the dollar against the dinar, causing a significant decline in the value of the dinar, which will cause a problem for the current governor and the rest of the bodies present in the arena, and they must avoid a decline in the value of the dinar by finding quick and direct solutions.”
Al-Abdeli stressed the “necessity for the governor-designate to fulfill his promises, the most prominent of which was to cancel the tax as soon as possible, and to carry out the reforms imposed on him so that he does not lose his credibility with the Libyan people.”
In turn, academic and economic expert Muhammad Darmish said, “It is possible to resort to this step – oil for food – if all available solutions are blocked.”
For his part, economic expert Ali Al-Mahmoudi considered that “the speech of the former governor, Al-Siddiq Al-Kabeer, was intended for informational purposes and directed at the common citizen who does not understand or comprehend the intricacies of the economy and numbers.”
He stressed that “a step like this does not happen because of a financial conflict between people, but the issue is much bigger than what the great friend and the world talked about, and we must realize that the world does not care about the loss of Libyan money or the closure of oil, which does not constitute more than 3 percent of global production, and which the world has become untrustworthy due to the repeated closures it is exposed to.”
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2024-09-24 10:37:34