IMF Staff Concludes Visit to Libya

IMF News, November 14, 2025

Source details

Press Release No. 25/376; mission dates: November 10-14, 2025.
IMF staff team led by Ms. Stephanie Eble visited Tunis to discuss Libya’s recent economic developments, the macroeconomic outlook, and the authorities’ reform priorities.
The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
The staff team looks forward to the upcoming Article IV discussions, which are expected to take place in the spring of 2026.

GDP growth in 2025 is supported by an increase in oil production.
Lower international oil prices and high public spending are expected to lead to continued high fiscal and current account deficits.
Long-standing political divisions have prevented the adoption of a unified budget, resulting in continued unrestrained spending that is putting pressure on the exchange rate and central bank reserves.
Despite pressures, international reserves have remained at comfortable levels.
Reported inflation remains low.
The outlook is subject to high uncertainty with risks tilting to the downside.
Twin fiscal and current account deficits are expected to persist over the medium term.
Risks mainly relate to further uncontrolled spending and ongoing political fragmentation.
Libya’s dependence on oil revenue implies that adequate investment in the oil sector is needed to maintain current production levels.

The Central Bank of Libya (CBL) has taken steps to regulate the foreign exchange market:
- injected foreign currency liquidity;
- issued new licenses to exchange bureaus to formalize the market.
Withdrawal of counterfeit notes was completed in September, which would help preserve the integrity of the payment system.
The CBL has increased reserve requirements to 30 percent.
The CBL has increased liquidity ratios to 35 percent.
The CBL introduced new Sharia-compliant investment certificates to absorb excess liquidity.
Staff emphasize the need for additional monetary policy tools to manage excess liquidity and react proactively to changing macroeconomic conditions.
Preserving central bank independence is essential to maintain financial stability and market confidence.
Staff welcome the CBL’s initiative to participate in the IMF’s Central Bank Transparency Code.

Top policy priority: agreement on a fiscal spending envelope consistent with internal and external balance, to be implemented in the context of a unified budget.
A unified budget needs to be supported by comprehensive spending reforms.
The recently launched centralized instant wage payment platform is a welcome step toward:
- enhancing transparency;
- reducing corruption;
- strengthening control over the wage bill.
Authorities are encouraged to make the centralized instant wage payment platform the main channel for wage payments and to expand the reform to other spending categories.
Important that future investments are guided by a transparent, prioritized multi-year investment plan aligned with available fiscal space and the economy’s absorption capacity.
Tackling long-overdue subsidy reform remains an important policy priority.

The IMF remains committed to extending capacity development to Libyan authorities in areas including:
- national accounts;
- price statistics;
- monetary policy tools;
- public financial management;
- banking supervision.
Staff look forward to the financial inclusion strategy that will support the CBL’s efforts to expand digital payments.

The mission thanks the Libyan authorities for the constructive policy dialogue and productive collaboration.

Source: IMF press release, "IMF Staff Concludes Visit to Libya" (Press Release No. 25/376), November 14, 2025.