๏ปฟWith spending by Libyaโs rival governments now outpacing state revenue, the economic system that has maintained the country's political stalemate is now coming to an end. The Central Bank of Libya (CBL) has tackled increasing spending by the Government of National Unity (GNU) in Tripoli and the rival Government of National Security (GNS) in Benghazi, mainly by devaluing the dinar and printing more money.
These efforts have only sought to slow down the impending collapse and have failed to address the real underlying cause of uncontrolled public spending. Now that the financial system that backed Libyaโs four-year status quo is critically untenable, Libyaโs rival governments need to implement real financial reform, combat corruption, and work to mend the nationโs institutional divide. However, there is a high chance that the GNU and GNS will seek to take sole control of the CBLโs dwindling resources, threatening further political destabilization and renewed violence.
