The Administrative Control Authority stated that the Central Bank of Libya is cooperating with it to reduce crimes and address several cases within the banking sector. It also indicated that a comparison between foreign currency uses and oil revenues has revealed discrepancies between surplus and deficit figures, despite the imposition of an exchange rate tax that did not achieve its intended objectives. Part of the fees imposed on foreign currency was transferred to public revenue, while the remaining amount reached around 51 billion dinars.
It added that foreign currency sold through commercial banks includes remittances, merchant cards, and personal spending. These remittances, cards, commercial transactions, and letters of credit represent the main structure of Libya’s trade policy and its commercial relations with countries in Europe, Asia, and elsewhere. However, personal spending accounts for a significant share in Libya and is considered a structural issue in the economy.
According to the Authority, total foreign currency usage shows that 84% is handled through commercial banks as part of the state’s total obligations and uses, while 16% relates to other obligations. Remittances account for 1% to 2%, while personal expenditures represent 38%.
It further noted that these financial flows could potentially benefit the Ministry of Foreign Affairs in shaping economic relations with other countries. The largest beneficiary of foreign currency transfers is the UAE, followed by Turkey, Egypt, China, Switzerland, the United Kingdom, Italy, Tunisia, and Spain. The UAE accounts for 26%, Egypt around 10%, and China 5%, followed by Switzerland and others. These figures reflect economic relations with these countries based on transaction origins, which vary depending on exchange rate usage and traders’ behavior, including customs evasion practices.
