THE ROLE OF THE CENTRAL BANK OF LIBYA IN ACHIEVING ECONOMIC STABILITY DURING THE PERIOD (2009-2020)

Abstract

The study aimed to identify the concept of economic stability and highlight the role played by the Central Bank of Libya in achieving the economic stability of the state.

To achieve this goal, the descriptive analytical approach was used, where the descriptive approach was used in the theoretical aspect, and the analytical approach in the applied aspect in analyzing the relationship between money supply as an independent variable and the inflation rate and the exchange rate as a dependent variable for the period 2009-2020.

The results of the study showed that there is a positive, statistically significant effect of money supply on the inflation rate in achieving economic stability in Libya, and there was a direct relationship, meaning that the more the central bank administration increased the money supply, the more this contributed to the increase in the inflation rate.

The study recommended to address inflation in the country and the exchange rate, in order to achieve economic stability, create investment opportunities, reduce exchange rate fluctuations, and formulate financial and supervisory policy for banks.