The role of regulatory oversight and central bank policies in protecting the value of the Libyan dinar

الملخص

This study examined the role of regulatory oversight and the policies of the Central Bank of Libya in protecting the value of the Libyan dinar, given the economic and political challenges facing Libya. The study adopted a descriptive-analytical approach and used a questionnaire directed at a sample of 100 individuals working in the banking sector and economic experts. The questionnaire included demographic data and three axes related to the effectiveness of oversight, the impact of monetary policies, and the challenges facing the Central Bank. The results showed weak effectiveness of regulatory oversight (averages 2.25-2.99), as oversight mechanisms were considered insufficient to support the stability of the dinar, with the limited impact of monetary policies (averages 2.25-2.77) in stabilizing the exchange rate and reducing inflation. The study also revealed that political division (average 4.15), weak institutional coordination (average 3.95), and a shortage of foreign currency reserves (average 3.90) are the main challenges. These findings are consistent with previous studies, such as Ben Taher (2021), which indicated the dependence of monetary policy on fiscal policy, and Al-Majid (2025), which confirmed the impact of political division on inflation. The study recommended strengthening regulatory oversight, improving monetary policies, addressing institutional divisions, and combating financial corruption to restore the stability of the dinar. The study contributes to bridging the knowledge gap on monetary policies in unstable economies and provides practical recommendations to support the Libyan economy.