The Central Bank of Libya announced yesterday in its statistical bulletin that Libya’s total revenues from January to the end of August 2026 amounted to about 98.9 billion dinars, compared to expenditures of 68.6 billion dinars - a surplus of about 30.3 billion dinars.
Foreign exchange uses during the same period amounted to US$ 20.1 billion, while oil revenues and royalties did not exceed US$ 15.2 billion, resulting in a foreign exchange deficit of about US$ 4.9 billion.
The CBL covered the hard currency deficit from profits on its investments.
Uncontrolled public spending by Libya’s competing governments
The hard currency deficit highlights the problem that Libya is suffering with the two competing governments in Tripoli and Benghazi engaged in uncontrolled public spending.
No oversight by parliament
This uncontrolled spending comes partly because of the lack of elections to install a mandated and unified parliament to act as the oversight body on the executives.
US-brokered Unified Spending Agreement
This uncontrolled spending has continued despite the US brokering a so-called Unified Spending Agreement last April between the two governments to save the value of the Libyan dinar, curb inflation, save foreign currency reserves and rationalise spending.
CBL Governor Issa tenders his resignation - then withdraws it
The failure by both governments to curb public spending prompted the CBL Governor to hand-in his resignation on 10 August. He withdrew his resignation after apparent guarantees that spending will be curbed.
The remaining six months of 2026 will indeed reveal if the two competing governments will adhere to controlled spending within Libya’s actual revenues.
Central Bank of Libya Governor Naji Issa Tenders Resignation
Libya’s Rival Administrations Agree First Unified Budget in 13 Years