Will printing “30 billion dinars” solve the liquidity crisis?

by times news cr

In the context of confronting the liquidity crisis, the Central Bank of Libya is preparing‍ to print 30 ‍billion ⁢dinars to provide the banking⁢ sector with the necessary ⁣liquidity, in addition to withdrawing the old currency that has become in limited circulation. Will printing the new dinar solve the liquidity crisis in the country?

Regarding this, economic expert Saeed Ben Rashoun said, “Printing money is a common step‍ in managing‍ monetary⁢ policy,” noting that “this step⁤ will not constitute a source of concern provided‌ that it‍ is indeed implemented with careful planning‌ and high ⁤safety specifications.”

For his part, economic​ expert Ahmed Al-Khamisi expressed, to ⁢the “WAL” agency, ​“his concern ‌about the inflationary⁤ risks that may result from increasing the money supply in the market,” considering that “pumping large amounts of money without corresponding economic growth may lead to ⁢increasing prices⁤ and reducing Purchasing ‍power.

Economist Idris Balqasim pointed⁢ out, “Printing⁢ a currency is⁤ a step​ within a financial reform plan ⁣aimed⁣ at revitalizing commercial activity affected by the recession resulting from a lack of liquidity.”

He explained, “This amount of ⁢money aims ⁤to replace the worn-out⁣ currency ⁤and enhance confidence in ⁢the‌ banking system,” calling‌ for “the necessity of ⁢coordination with other financial policies to avoid negative ⁣repercussions.”


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how can Libya balance liquidity injection and inflation control in its financial reforms?

Interview with Economic⁤ Expert Saeed Ben Rashoun on⁣ LibyaS Liquidity Crisis

Time.news Editor: Thank you for joining us ⁢today, Saeed. As you know, the central Bank⁢ of Libya is set to print 30 billion dinars to⁣ address the liquidity crisis. Can you explain ⁢how this move ⁢might impact the banking sector?

Saeed Ben ⁢Rashoun: Thank you for having me. Printing money is indeed a‌ common measure in monetary policy, ‌notably when addressing liquidity issues. If⁤ implemented correctly, this step shoudl help provide the banking sector with the necessary liquidity ​to operate effectively. However, careful planning and high safety specifications are crucial to avoid unintended negative‍ consequences.

Time.news Editor: Ther are varying ‍opinions on ​this approach. Economic expert‍ Ahmed Al-Khamisi expressed concerns about inflation risks.How significant are these risks in the context of increasing ⁤the money supply without corresponding economic ‌growth?

Saeed ⁣Ben Rashoun: Ahmed raises a valid point. The risks of inflation can be significant if the money supply is ‌expanded ‌without a matching growth in the economy.Increasing prices and diminishing purchasing power could pose‌ serious challenges for the population. Thus, it’s essential that this new injection of liquidity ​is part of ​a‍ broader economic strategy that encourages growth, rather than just a stopgap solution.

Time.news Editor: Another expert, Idris Balqasim, mentioned that this currency printing is part of a financial reform plan aimed at reviving commercial activity. What other measures should accompany this move to ensure overall economic stability?

Saeed Ben Rashoun: Idris ‌is correct that coordination with other financial policies is⁢ crucial.Alongside printing new currency, the government should focus on enhancing measures that stimulate economic growth, such as⁤ investment in infrastructure, improving the regulatory environment, and promoting buisness advancement. Creating a comprehensive strategy that includes fiscal policy, reforming taxation, and reinforcing the banking sector’s ‌confidence is essential to avoid negative ramifications from the new currency issuance.

Time.news Editor: What practical advice would you offer to the citizens of Libya regarding the ⁤potential​ effects of this move on thier daily lives?

Saeed Ben Rashoun: I‌ advise citizens to​ stay informed and actively engage with local economic discussions. Understanding how these monetary policies affect daily prices is significant. Additionally, maintaining a budget and being mindful of ⁣spending is essential during periods ⁤of economic adjustment. emphasizing saving in stable currencies or assets can also be a prudent step as the economy navigates ⁣these changes.

Time.news Editor: Thank you, Saeed, for sharing⁢ your insights on this critical issue. It will be ​interesting to see how the Central Bank’s decisions unfold in⁣ the coming weeks.

Saeed Ben Rashoun: My pleasure! I look forward to seeing the ⁤outcomes and hope for positive‍ changes for Libya’s economy.

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