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Libya oil state leads to drowning in economic crises

Libya oil state leads to drowning in economic crises

Libya has the largest oil reserves in the world; it depends mainly on revenues from those oil reserves that it possesses in the management of its various economic activities,

Economic programs for development and means of production provide assistance in the reconstruction of the Libyan state and the development of infrastructure and urban, agriculture and animal husbandry.

Libya must seek an increase in production in the need of multiple consumers and different at home and export the surplus of domestic production abroad.

But today's economic programs agreed upon by the Presidential Council and the Central Bank of Libya in dealing with the exchange rate and the imposition of fees on foreign exchange sales of hard currency, the hard currency that is owned by Libya out of its oil revenues are not from the economic reforms, but this fact is just nothing but economic maneuvers.

I have mentioned in many articles published in previous years the importance of private sector in the participation for the use of additional forces with the Libyan state in the work for production needed of consumers, especially after discovering that Libya has oil reserves and non-oil resolves in the knowledge of the way of melting and the use this resources in the Libyan national economy.

Economic distortions that can be remedied in the economy are not levies on sales of foreign exchange for trade and personal expenses, but in the creation of free markets that provide the accumulation of surplus production, which works to curb the rise in prices in the Libyan markets.

The Libyan state is still in a constant conflict between the dinar and foreign currencies in the parallel markets, it is an attempt to correct the economic distortion experienced by Libya in the past years.

Libya is still witnessing today lack of liquidity and high prices in the private market, leading to increased control and pressure of the Libyan state on the Libyan national economy.

With the increasing frequency of debate in Libyan circles and the drop of Libyan dinar in the Libyan parallel markets, the black markets in the so-called Libyan street.

The parallel market deal with the exchange rates outside the official economic system of the Libyan state helps to launder money that became Libya's main purpose of the issue with the Union European Union of this regard.

Decline in Libyan oil production is in fact a form of penalties paid by the Libyan national economy, in which Libya depends on it for the overall economic renaissance, to review of the pursuit of the Libyan problems, the expansion of internal political differences, the increase in repercussions of corruption on public finances between Physical policy and monetary policy.

Since the exchange between the private and government sectors is a good way to consider the basic value to the path of comprehensive economic renaissance, the Libyan state has to find real economic reforms programs rather than economic maneuvers that work on the qualitative shift from a planned economy to a free economy based on free market system, based on commercial, industrial and livestock transactions.

We find from time to time the interaction of the Libyan parallel markets with the statements produced by the Governor of the Central Bank of Libya, not allocating the heads of Libyan families their money.

Stating that the corruption is from the national identity number system, allegations were denied by the system of Libyan birth record office and a formation of a committee to verify all data for citizenship was in process to help preserve the threat to Libya's national security.

The dollar's rise against the Libyan dinar resulted in an increase of 4.48 to USD by a difference of 90 Dirham of Libya currencies, as well as other foreign currencies, including the exchange rate of 5.04 LYD to the One Euro, 5.5 LYD to GBT by the Difference of 150 Libyan Dirham.

While Libya has a vast wealth of frozen financial assets abroad, financial and administrative corruption, including economic maneuvers, not economic reforms, increases unemployment and the failure of Libyan governments to extricate the East, West, and South from poverty, destitution, and homelessness in the country.

Libya's internal policies reflect the absence of a modern economic market and stable politics that certainly work on the financial, industrial and commercial progress and from the notion of public ownership to private ownership.

In the addition, the Libyan state must reform the Libyan national economy in the form of bank loans that reduce the conflict between those who own and those who do not, so as not to increase the gap between the poor and the rich in Libya.

Today, Libya is under economic and political pressure at a time when its reserves of surplus currency are coming back as an economic maneuvers, which include the imposition of fees on foreign exchange sales to cover the expenses of the general budget and the demand of the House of Representatives in Al-Baidah to cover the expenses of the upcoming presidential and legislative elections.

The economic recession has dominated the national economy and the inflation levels reached to unprecedented levels even during the old regime of Libya, which was characterized by a formalized socialist system that which created an additional incentive for disguised unemployment in the Libyan national economy.

The decline Libyan state economy is due not to the resistance of the private sector, which has the expertise and competence to qualify for work and the contribution of the reconstruction of the Libyan state and the development of infrastructure and urbanization, but the low level of government contributed work in Libyan national state economy which is the main factor of the slowdown.

We note again that the continuation of the economic maneuvering approach of the Central Bank of Libya with the Government of National Reconciliation with the absence of comprehensive economic reforms.

Total economic packages of internal and external investments help seek out the sinking of Libya in more economic crises, a real flight by blocking the Libyan funds moving out abroad in foreign economies.

Ramzi Halim Mavrakis

Businessman - Libyan political and economic analyst

Resident in the United States of America

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