Libya's foreign exchange deficit has reached $4.7 billion in the first nine months of 2026, according to the Central Bank of Libya. The bank reported that the country's use of foreign exchange totaled $22.3 billion, while revenues amounted to $17.6 billion. The deficit was covered by returns on the bank's investments in deposits, bonds, and gold. This financial situation has raised questions about the management of Libya's wealth and the allocation of resources.
The Central Bank of Libya's report highlights the country's continued reliance on oil revenues. In September 2026, oil sales reached 94.2 billion Libyan dinars, while oil royalties amounted to 17.4 billion dinars. These revenues make oil the primary source of income for the Libyan government. However, the bank also reported that tax revenues totaled only 2 billion dinars, customs revenues reached 263.2 million dinars, and telecommunications revenues amounted to 31.1 million dinars.
The Libyan government's expenditure for the first nine months of 2026 was 88.6 billion dinars. The majority of this amount, 60.6 billion dinars, went towards salaries, while 12.1 billion dinars were allocated for operational expenses, 1.6 billion dinars for development, and 14.3 billion dinars for subsidies. The high expenditure on salaries and operational expenses has raised concerns about the efficiency of government spending and the allocation of resources.
The Central Bank of Libya's report also revealed significant spending by Libya's political institutions. The House of Representatives spent 61.524 million dinars, while the High Council of State spent 48.013 million dinars. The Presidential Council and its affiliated bodies spent 31.384 million dinars and 456.857 million dinars, respectively. These figures have sparked questions about the transparency and accountability of government spending.
Libya's defense, interior, and foreign ministries have also received significant funding. The Ministry of Defense and its affiliated bodies spent 8.530 billion dinars, while the Ministry of Interior and its affiliated bodies spent 5.927 billion dinars. The Ministry of Foreign Affairs and International Cooperation spent 1.716 billion dinars. These expenditures have raised concerns about the effectiveness of government spending in these sectors.
The Libyan government's financial situation has sparked calls for greater transparency and accountability. The country's citizens are demanding more information about how their wealth is being managed and allocated. The Central Bank of Libya's report has highlighted the need for more efficient management of public finances and greater transparency in government spending.
The Libyan government faces significant challenges in managing its wealth and allocating resources effectively. The country's continued reliance on oil revenues and high expenditure on salaries and operational expenses have raised concerns about the sustainability of its economic model. The government must address these challenges and work towards greater transparency and accountability in its financial dealings.
Key points
- Libya's foreign exchange deficit nears $5 billion
- Oil revenues remain the primary source of income for the Libyan government
- The Libyan government faces significant challenges in managing its wealth and allocating resources effectively
