INTERVIEW-Libyan rebel central bank lacks reserves, eyes dinar

* Plan to inject dollars once funds pledged by West arrive

* Libyan dinar stabilises in east after initial fall

* Rebels say will not let currency collapse

(Fixes spelling in bullet point)

By Deepa Babington

BENGHAZI, Libya, May 12 (Reuters) - A central bank set up by Libyan rebels has virtually no reserves, but plans to inject dollars into the economy to prop up the Libyan dinar once funds pledged by Western powers arrive, the rebel economy chief said.

The Benghazi-based rebel administration established the bank to rival the one in Tripoli, but the new entity continues to use the same currency issued in the Gaddafi-controlled west and has few monetary tools beyond those of a finance ministry.

The rebels have been frantically working to pay salaries for public workers and prevent the economy in the eastern territory it holds from collapsing after an uprising against Muammar Gaddafi began in mid-February.

"We have no reserves, because Gaddafi emptied everything," said Abdullah Shamia, who was appointed economy chief last week on the rebel National Council's executive committee that runs day-to-day affairs.