Outlet: Arab News

Language: English

Abstract: The discourse on Libya often overlooks the role of its finance and banking sector in perpetuating dysfunction. Political elites resist reforming the sector, which is plagued by opacity and corruption. The central bank, despite being tasked with ensuring public services and economic integrity, maintains a status quo that benefits the connected few. Decades of economic centralization and oil dependency have left the sector weak and disorganized. Attempts at reform have been ineffective, with the central bank dominating national finance and perpetuating a conflict economy. The sector's dysfunction exacerbates economic challenges, including unemployment and limited access to financing. Refugees and migrants face even greater exclusion from the formal economy. Despite its critical role, international efforts to address Libya's financial sector remain insufficient, allowing the status quo to persist. As long as the sector remains resistant to reform, Libya's economic recovery and stability will remain elusive.

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