Our source from the Central Bank of Libya revealed that the Bank’s battle with major traders has reached a breaking point, as Governor Nagy Issa has dealt a series of successive blows to currency dealers, inflicting heavy losses. As a result, some affected parties have launched media attacks and smear campaigns against the Bank and its governor.
The source added that Governor Nagy Issa succeeded in enforcing the decision to withdraw the 50-dinar note, which had become a safe haven for currency hoarding. He also managed to increase the value of the dinar and shrink the exchange rate margin from 8 to below 7 dinars — at a time when many had predicted the dollar would reach 10 dinars. This move was followed by the Central Bank’s announcement of the imminent withdrawal of the 20-dinar note, which had become the traders’ last resort due to its poor quality and susceptibility to forgery from being printed in Russia.
The Bank also announced its intention to regulate the currency market and empower licensed exchange companies and offices — effectively giving the Ministry of Interior the green light to take bold action and shut down unlicensed shops and offices in Souq Al-Mushir. The source concluded that the Central Bank is bound to prevail, but only through its own efforts and with sufficient support from the public.
