Audit Bureau 2014 report warns of rising deficit and inflation and Libyan dinar devaluation

By Libya Herald reporter:

Tunis, 1 May 2015:

In its 2014 report, the Libyan Audit Bureau has warned that there is a danger . . .[restrict]that the Libyan dinar may be devalued.

In its latest annual report released yesterday, the Audit Bureau further warned that Libya could not continue to spend beyond the nation’s actual revenues.

It added that the state must put an end to what it called ‘’unnecessary’’ expenditure and spend only within the realistic limitations of its actual revenue.

The Audit Bureau also cautioned against ‘’unrealistic’’ estimates of oil revenues, revenues that it stressed were fluctuating in nature.

Spending beyond its revenues has led and would continue to lead to state deficits that are financed by foreign currency reserves, which are being eroded at fast pace.

This, it warned, would mean that the Central Bank of Libya would be powerless to stabilize the value of the dinar and in turn, this would lead to even higher inflation. [/restrict]