The Central Bank of Libya

This book offers a thorough account of Libya’s monetary policy and central bank under conditions of political fragmentation, institutional division, and economic volatility. Written by Saddek Omar El Kaber, former Governor of the Central Bank of Libya, and Michael G. Schaeffer, former World Bank Country Representative and independent economist, the book draws on insider institutional knowledge and extensive macroeconomic data to trace the evolution of Libya’s financial system from independence to the present. The Central Bank of Libya documents the Central Bank’s efforts to maintain currency stability, manage foreign reserves, and navigate the challenges of dual governments, parallel banking systems, and oil dependency. The authors analyze the transition to Islamic banking, the digitization of the financial sector, and the impact of regional spillovers and international engagement. They also assess the consequences of Dutch disease, the rise of the illicit economy, and the role of the Central Bank in resisting political interference and preserving institutional integrity. With detailed chapters on monetary outcomes, debt management, exchange rate policy, and banking sector reform, this book provides essential insights for scholars of monetary economics, central banking, and fragile states, as well as policymakers and practitioners working in MENA and post-conflict contexts.