The currency is pegged to the IMF's special drawing rights (SDR), which restricts monetary policy flexibility. Nonetheless, the Central Bank of Libya cut benchmark interest rates by 2 percentage points in early 2009 and increased them back to 5% in early 2010. Pressure on the Central Bank to overhaul its approach to monetary policy and regulation of financial services is likely to increase as the banking sector is liberalised. Liquidity is excessive, and state-subsidised credit institutions are currently crowding out commercial bank lending. Efforts will be made to address these issues and there should be some improvements by the end of the forecast period. Possible reforms include fully liberalising interest rates, issuing Central Bank bills and allowing commercial banks to issue certificates of deposit.