Reuters reported today, citing three informed sources, that unofficial Libyan banknotes exchanged for dollars have contributed to the decline in the value of the dinar. According to the sources, some of these banknotes were printed by Russia and shipped to eastern Libya this year, while others were illicitly printed within Libya.
The sources also revealed that the funds from these banknotes were used for public works in the east following floods and were also financing Russian mercenaries. The Central Bank of Libya in Tripoli has described the new banknotes as counterfeit, but they are being exchanged for hard currency on the black market or through local banks, according to a government source in eastern Libya, a Libyan banking source, and a diplomatic source.
The investigative group “The Sentry,” which focuses on corruption and war crimes, disclosed Russia’s role in flooding Libya with new banknotes. Despite this, the Central Bank of Libya in Tripoli and in the east did not respond to Reuters’ requests for comment, nor did Khalifa Haftar. Additionally, the Russian printing company Goznak did not respond to a written request for comment.
Reuters further noted that Russia had supplied several billion dinars to eastern authorities from 2016 until the ceasefire in 2020, aiding Khalifa Haftar and the government he supported in Benghazi. It was previously unknown whether Russia had supplied new banknotes this year. The imported dinars between 2016 and 2020 were officially issued by the Central Bank of Libya’s eastern branch and bore the signature of its governor, Ali al-Hibri. Their issuance exacerbated economic divisions within Libya due to differing exchange rates across various regions, according to the agency.
