As the exchange rate for the Libyan dinar reaches 7.79 against the US dollar in the black-market, making a mockery of the vow by Naji Issa, the Governor Central Bank of Libya (CBL), to bring the exchange rate to below LD 7 per dollar and end the cash crisis ‘‘by October’’, Libya’s Grand Mufti, Sadig al-Ghariani said “The Central Bank must review its policies, as its actions have led to a resurgence of usury in the country.”
The Grand Mufti, speaking on his dedicated satellite TV channel added that “If you want to obtain the liquidity that has completely disappeared from the banks, you have two options: either buy dollars with a cheque at 9 dinars and sell them for slightly more than 7 dinars, thus taking 15% from your pocket—which is usury—or exchange 1,000 dinars in cheques for 900 dinars in cash or less, which is usury in its purest form.”
The Grand Mufti was lambasting the CBL Governor’s so-far failed attempt to end the cash crisis and to strengthen the dinar. The Governor’s recent recall of old ”red coloured / Red Mullet Trillia (triglia in Italian)” notes, forced many Libyans to sell them cash or through a cheque in the black-market at the discount rates the Mufti is referring to. Many preferred to lose a hefty percentage rather than deposit them in their banks where they have no hope of withdrawing them. Today, queues were still forming outside banks. Most banks, including one visited by Libya Herald yesterday, have no cash at all to distribute to customers.
Mufti objects to CBL’s Certificates of Deposit
It is not the first time Libya’s highest based cleric has intervened in political affairs or criticised the CBL recently. He has a rich track record during the 2011 revolution – including some interventions deemed inciteful.
For example, on 9 October, the Grand Mufti said the ‘‘Absolute Speculative’’ (referred to as Mudaraba in Islamic – Sharia) Certificates of Deposit proposed for sale by the Central Bank of Libya (CBL) are not 100 percent Islamic – Sharia compliant – a ruling that could wreck the CBL’s grand plans to solve the cash crisis, defend the value of the Libyan dinar and reduce inflation and cost of living.
Mufti scolds CBL for high dollar FX rate
In February this year, the Grand Mufti criticised the economic situation in Libya. He was critical of the lack of effective action taken by those in power in lessening the economic burden on the average Libyan citizen.
Al-Ghiriani said “Every official in Libya should be ashamed of the collapse of the Libyan dinar against foreign currencies and the dollar exchange rate reaching about 7 Libyan dinars’’.
It was expected that the new CBL Governor and his Board of Directors would be more proactive and effective in improving the exchange rate of the Libyan dinar against the main foreign currencies.
The Grand Mufti went to say ‘‘Libyans export one and a half million barrels per day of oil and their (annual state) budget is 170 billion dinars, and yet when the Libyan walks, he walks humiliated, despicable, humiliated, and exchanges the Libyan dinar for half a Tunisian dinar or less’’.
Directing a broadside at Libya’s politicians and administrators, He added ‘‘And after this humiliation, no Libyan official was ashamed (enough) and resigned.”
Mufti supports fuel subsidy reform
In July, basing his religious recommendation on Libya’s fuel subsidy reform on the IMF’s study published this month entitled “Energy Subsidy Reform in Libya”., the Grand Mufti said ‘‘the first step to reforming the waste of public money that Libya is currently experiencing is to lift the (energy) subsidies, almost half probably more, of which go to the money of criminals and smugglers’’.
Drawing on the IMF Al-Ghariani continued ‘‘The report issued by the IMF calling for the lifting of energy subsidies is a study by international experts, the government should take advantage of it and gradually lift subsidies, as the report suggested, as there is no country in the world where gasoline and energy are sold at the price that it is sold at (LD 0.15 / US$ 0.09 per litre) in Libya’’.
Mufti supports Presidency Council’s decrees
On the other hand, the Grand Mufti announced in a video recording his support for the Presidency Council’s controversial April 2025 decrees. Some critics deemed the Presidency Council had overstepped its authority.
He rejected those from inside and outside who bypassed them, pointing out that the UN mission does not want to hold elections in Libya.
Need for elections
In January this year, during a meeting with the outgoing British Ambassador, Martin Longden, Dar Al-Ifta reported that the Mufti stressed that there is no saviour for Libya except by going to elections by adopting the constitution to end the transitional periods, eliminate financial and administrative corruption, and end the division in the country.
Demanded action not words from international community
The Mufti reportedly asked the active countries of the Security Council to support this option so that Libyan society enjoys stability, and that other loose statements of calling for reconciliation and talking about stability without effective solutions are all slogans that will not bring us to safety.
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Grand Mufti raises objections to CBL’s supposedly Islamic – Sharia compliant certificates of deposit
Secular and religious agree on need for Libya’s gradual energy subsidy reform
