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Author: Amira Cherni

Over 23 Billion Dollars in Total: Foreign Currency Uses According to the Central Bank Statement

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A statement from the Central Bank of Libya revealed the total uses and obligations of foreign currency, which amounted to $23.193 billion.

The statement outlined various uses, including salaries for Libyan workers abroad, which totaled $270 million, and medical treatment abroad at $99 million. The National Oil Corporation received $1.623 billion, while scholarships for students studying abroad amounted to $207 million. The Medical Supply Agency and the National Center for Disease Control were allocated $272 million, and remittances for other entities reached $539 million.

Additionally, the public electricity sector used $850 million, and higher education and scientific research were allocated $33 million. Credits for other entities reached $203 million.

According to the statement, commercial banks used $11.110 billion in documentary credits, $306 million in remittances, $7.562 billion for personal purposes, and $119 million for traders’ cards. Thus, the total foreign currency usage exceeded $23 billion.

Exclusive: Directing Correspondence to Dbeibeh and His Government Entities, Shakshak Reveals Misuse of Unclaimed Basic Salaries

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Our source has exclusively obtained a letter from the head of the Audit Bureau, Khaled Shakshak, addressed to the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, and affiliated government entities.

Shakshak revealed instances where unclaimed basic salaries were redirected to other expenditures in violation of the Financial System Law and the Budget, Accounts, and Stores Regulations. This was discovered through the Bureau’s tracking of spending movements under the basic salaries category.

In his correspondence to Dbeibeh and the relevant entities, Shakshak emphasized that some entities funded by the public treasury failed to comply with the procedure of transferring unclaimed salaries—those not collected by their rightful recipients during the month—to the deposits and trust account within the legally specified timeframe.

Shakshak stressed that, in the interest of public welfare, all entities funded by the public treasury must adhere to Article 136 of the Budget, Accounts, and Stores Regulations, ensuring that unclaimed salaries are recorded in the deposits and trust account in favor of their rightful owners.

EU Reporter: Italy Unlikely to Risk Long-Term Economic Projects with Libya Without Assessing the Situation—Details Inside

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The EU Reporter website reported on Saturday that Italy has expressed significant interest in signing new contracts with Libya, aligning their interests not only in the oil and gas sectors but also in combating illegal migration.

According to the site, in 2023, the Italian energy company Eni and Libya’s National Oil Corporation signed an $8 billion gas production deal aimed at boosting energy supplies to Europe. Since then, the two Mediterranean countries have strengthened their ties, with Italian Prime Minister Giorgia Meloni visiting Libya an unprecedented four times since taking office, reaffirming Italy’s commitment to expanding partnerships across multiple sectors.

However, experts caution that Italy’s attempt to become a European gas hub overlooks the risks associated with investing in Libya. According to the latest report by the British geopolitical and security intelligence agency Dragonfly, there are growing concerns about the potential for a resurgence of armed conflict in Libya over the next year.

Alessandro Bertoldi, CEO of the Italian branch of the Milton Friedman Institute, noted that oil and gas production in Libya is frequently disrupted by the country’s instability and political factionalism. The recent oil shutdown, stemming from disputes over control of the Central Bank, is just one example of how the fuel and energy markets are manipulated for political interests.

The report concluded by stating that Italy is unlikely to risk a long-term economic project without thoroughly assessing the region’s situation.

Bloomberg: Libya’s Daily Oil Production Reaches Highest Level in 11 Years

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Bloomberg reported on Friday that Libya’s oil production has surged to its highest daily level in 11 years, just months after a political crisis significantly reduced the country’s output.

According to the National Oil Corporation (NOC), crude oil and condensate production reached 1.422 million barrels, exceeding the corporation’s target by about 22,000 barrels. This marks the highest daily production since 2013, as per NOC data.

The agency highlighted this as a remarkable turnaround for Libya’s oil output this year. In August, disputes between rival governments in the country’s east and west halved production, sparking fears of renewed conflict. However, the two sides reached a resolution a month later. Libya is now planning to launch its first energy exploration tender since the 2011 civil war that ousted leader Muammar Gaddafi.

Bloomberg noted that the production increase is encouraging the return of foreign labor to Libya. Years of instability had caused significant fluctuations in output, limiting revenues. Power struggles further compounded neglect in developing or upgrading oil infrastructure.

The report emphasized that the production boost comes at a challenging time for OPEC, of which Libya is a member. On Thursday, OPEC and its allies postponed production increases for three months amid declining demand in China and rising supplies from the Americas.

Although Libya is exempt from OPEC’s production cap system, its output contributes to the group’s overall performance and adds to global supply, Bloomberg concluded.

Reuters: Central Bank of Libya Plans to Print 30 Billion Dinars to Ease Liquidity Crisis

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Reuters reported on Friday, citing the Central Bank of Libya, that it has contracted with the British company De La Rue to print 30 billion dinars ($6.25 billion) in an effort to address the liquidity shortage in the country’s commercial banks.

The Central Bank stated last Sunday that the liquidity crisis would be resolved “gradually” starting next January, as part of a plan approved by the Board of Directors.

Reuters highlighted that despite its oil wealth, Libya has faced a liquidity shortage for years. Citizens have been forced to queue outside banks to access cash since the fall of Muammar Gaddafi’s regime in 2011.

The report added that Libya’s economy relies heavily on oil revenues, with state employee salaries making up the largest share of expenditures. Salaries totaled 48.6 billion dinars from January to October, out of total oil revenues of 67.8 billion dinars during the same period, according to Central Bank data.

The Central Bank stated that its governor, Seddiq Al-Kabeer, met on Wednesday with De La Rue CEO Clive Vacher and the company’s regional director, Michael Wilson, to discuss the contract’s implementation.

The meeting also addressed the schedule for receiving various currency shipments, according to Reuters.

The Central Bank plans to withdraw old banknotes according to a specific timeline but did not disclose further details.

Exclusive: New Shipment of Currency Arrives at the Central Bank of Libya Vaults

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The Central Bank of Libya revealed in an exclusive statement to our source that a new shipment of currency has just arrived at the Central Bank via Mitiga International Airport. The shipment was immediately transferred to the Central Bank’s vaults in preparation for distribution to commercial bank branches in the coming days based on demand.

Additional shipments will continue to arrive as directed by the Central Bank Governor, Naji Issa, aiming to completely resolve the cash liquidity crisis before the upcoming Ramadan.

Exclusive: Audit Bureau Deputy Urges Telecommunications Authority to Cease Covering Expenses Through LPTIC Holding Company

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Our source has exclusively obtained a correspondence from the Deputy of the Libyan Audit Bureau, Atiat-Allah Hussein Abdul Karim, addressed to the Chairman of the General Authority for Communications and Informatics.

In the letter, the Deputy demanded the immediate cessation of the authority’s practice of covering a significant portion of its expenses through the LPTIC and its subsidiaries. The amount covered so far has reached 100 million Libyan dinars, done via requests to settle invoices related to revenue-generating expenditures.

From Cash Liquidity to Structured Salaries: A Data-Driven Analysis by Abu Sriwil

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Dr. Yassin Abu Sriwil, an international trade expert, delves into Libya’s escalating economic challenges, revealing the impact of unstable financial policies on citizens and their families. In his article, he likens public salaries—an essential right—to credit facilities, questioning the current mechanisms and their repercussions.

The Core Issue: Numbers Speak

  1. Delayed Salaries
    • Public sector employees, 70% of Libya’s workforce, face salary delays averaging 60-90 days, leaving them financially vulnerable.
  2. Increased Demand for Cash
    • Cash demand surged by 25% in 2024 compared to 2023.
    • Black market cash transactions exceed 40 billion Libyan dinars annually.
  3. Imposed Credit Facilities
    • Credit system deductions reach 60% of actual salaries.
    • Digital payment withdrawals incur additional fees of 1-5%.

Role of Key Institutions

  1. Central Bank of Libya
    • Promised full liquidity by November 2024 but revised projections to 2025.
    • Despite lifting withdrawal limits, citizens bear extra costs under credit facilities.
  2. Government
    • Public spending hit 112 billion dinars in 2023, with 40% allocated to salaries.
    • Projections for 2024 indicate a 30-40% rise due to political divisions and duplicate spending.

Consequences of Current Policies

  1. Increased Black Market Reliance
    • Citizens lose 10-15% of their salaries obtaining cash.
    • Black market salary transactions exceed 5 billion dinars annually.
  2. Shadow Economy Growth
    • The informal sector expanded by 35% in five years, now contributing over 40% of GDP.
  3. Financial Drain on Families
    • Families spend 15-20% of their monthly income to bridge gaps caused by delayed salaries and high banking costs.

Proposed Solutions

  1. Regular Cash Flow
    • Ensure monthly cash injections of at least 10 billion dinars into banks.
    • Standardize salary disbursement by the 5th of every month.
  2. Reducing Black Market Dependency
    • Monitor money exchange offices with high-interest rates.
    • Launch government platforms for timely electronic salary transfers.
  3. Transparency and Anti-Corruption Measures
    • Address banking corruption draining 15% of GDP.
    • Reform subsidies to target productive sectors effectively.
  4. Formal Economy Boost
    • Increase investments in infrastructure and essential services by 10% annually.
    • Implement flexible policies to reduce the informal economy by 5% annually.

Conclusion
Amid central bank delays and government shortcomings, Libyan citizens remain the most affected. Sustainable solutions grounded in accurate data and political will are essential. Transforming salaries from a burden to a stabilizing economic tool can restore family stability and reduce reliance on the informal economy.

Withdrawing Money from Libyan Banks: A Challenging Path as Al-Monitor Highlights Financial System Collapse

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Published by: Al-Monitor on Wednesday

Libya’s financial crisis has forced many citizens to rely on payment cards amid the collapse of the financial system, following over a decade of instability and war. According to Al-Monitor, cash withdrawals have become an arduous process, with long queues of hundreds of people waiting outside heavily guarded banks. Often, cash reserves run out early due to severe liquidity shortages.

Lack of Trust in the Banking System

The report highlights that mistrust in the financial system has led Libyans to hoard cash rather than depositing it into banks. Currently, banks limit withdrawals to 1,000 Libyan dinars (approximately $206) per transaction. This mistrust exacerbates delays in the payment of salaries to government employees, who make up the majority of Libya’s workforce.

Transition to Digital Payments

In cities like Misrata, a significant coastal and commercial hub, the population of 400,000 is increasingly turning to bank cards. However, this shift is not without hurdles. The scarcity of ATMs and the lack of card payment acceptance among vendors pose challenges to a cashless economy.

A Misrata resident mentioned that using payment cards has simplified shopping, reducing the need to carry large sums of cash.

A Divided Central Bank

Political turmoil has further fragmented Libya’s financial institutions. Since 2014, competing factions have printed multiple versions of 50-dinar banknotes. To combat counterfeit currency, the Central Bank of Libya announced the withdrawal of these notes in April, initially setting a deadline of August but later extending it to the end of the year.

The withdrawal of these notes has added another layer of complexity. Musab Al-Haddar, a 45-year-old teacher, expressed frustration over shops refusing the old 50-dinar bills.

Addressing the Crisis

To alleviate the current crisis, the Central Bank of Libya injected 15 billion dinars into the economy in late October and urged banks to expedite the issuance of payment cards. However, achieving a seamless transition toward digital transactions requires addressing systemic challenges, such as increasing ATM availability and equipping vendors with card payment devices.

Bloomberg: Libya Contributes to Increasing OPEC’s Production for the Second Consecutive Month

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Bloomberg reported today, Tuesday, that Libya accounted for most of the increase in oil production for the Organization of Petroleum Exporting Countries (OPEC) for the second consecutive month.

Bloomberg confirmed that OPEC produced more than 27 million barrels of crude oil per day in November, an increase of 120,000 barrels compared to October, following Libya’s recovery of its disrupted production.

The agency added that Libya’s production increased by about 110,000 barrels, reaching 1.14 million barrels per day, the highest level since July, after the restart of the Sharara oil field in October.

Al-Harati: “On International Day of Persons with Disabilities, Waha Oil Company Exemplifies Ideal Treatment of Disability as a Humanitarian Issue”

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Hisham Al-Harati, Legal Advisor for the “Zaykom Zina” Organization for the Rights of Persons with Disabilities, wrote: “On this International Day of Persons with Disabilities, while the world celebrates, in Libya, the day often becomes an occasion for fleeting sentimentality, filled with exaggerated expressions of empathy from officials and decision-makers. Sadly, these emotions are often insincere, fading as quickly as the day ends. The focus on disability rights is too often reduced to a single day, followed by the neglect of legal and human rights obligations for the rest of the year.

However, stepping away from this superficiality, it is important to highlight that under Libyan legislation, failure to enforce laws related to the rights of persons with disabilities constitutes a breach of public duty and is considered a criminal offense. Public officials who neglect their responsibilities, including implementing disability-related legislation, can be penalized under Libyan Penal Code. For example, Article 229 stipulates imprisonment for any public employee who neglects their official duties without a legitimate excuse, while Article 230 outlines penalties for misuse of authority or violation of laws and regulations.

Libya’s Law No. 5 of 1987 concerning persons with disabilities, alongside associated regulations and decisions, and the United Nations Convention on the Rights of Persons with Disabilities (of which Libya is a signatory), set forth obligations to ensure the provision of necessary services and facilities for persons with disabilities. Failing to meet these obligations constitutes a legal violation warranting accountability.

In conclusion, it is our pleasure today to commend Waha Oil Company as an exemplary model in supporting and empowering its employees with disabilities. The company has approached disability as a humanitarian matter, adhering to legislation and adopting supportive policies to create an inclusive work environment. It ensures equal opportunities for employees with disabilities to perform their duties alongside others. Such commitment is a testament to justice, equality, and fairness, and it serves as a standard for all institutions to follow.”

With Details: Al-Safi: “The New Leadership of the Central Bank Relies on a Strategy of Providing Market-Reassuring Information”

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Economic expert Mohamed Al-Safi published an article on his page, discussing the use of information as a monetary tool in Libya.

When monetary tools are mentioned, discussions often focus on traditional instruments such as interest rates or exchange rates. However, positive and disciplined communication with the market is an equally significant monetary tool.

The new leadership of the Central Bank of Libya has begun to clearly demonstrate its characteristics, effectively employing one of the strongest monetary tools at its disposal: good communication and information dissemination.

The new management relies on a strategy of delivering information that reassures the market, leveraging the principle that “capital is cowardly” to steer it away from speculative markets and reduce speculators’ impact on the Libyan economy. This strategy is not limited to information sharing but extends to restoring trust through consistent decision-making and defending those decisions in practice. The alignment between declared policies and their transparent implementation fosters confidence in the institution, signaling that the Central Bank has a clear plan and is determined to execute it.

This approach marks a departure from the previous management, which often caused market anxiety and used information negatively (e.g., raising the red flag in 2015), destabilizing the market. In contrast, the current leadership employs realistic reassurance as a tool to prevent market chaos.

Exchange Rate Messages as a Model for Monetary Communication
Messages concerning exchange rates are a prime example of using communication as a monetary tool. The Central Bank has conveyed clear signals about its intention to lower the exchange rate, reducing incentives for capital that had previously engaged in speculative dollar trading for profit. This strategy lessens artificial demand for the dollar as a speculative commodity and promotes its real use for trade and imports.

Liquidity Management and New Banknote Announcement
Regarding liquidity issues, announcing the printing of new banknotes might encourage those holding large sums outside the banking system (so-called “under the mattress” savings) to deposit these funds in banks, fearing future difficulties in using them. This measure could reintegrate part of the money circulating outside the banking system into the official economic cycle.

Challenges to Success
Despite its promising approach, there are risks that could hinder these policies, including:

  1. A decline in oil revenues might weaken the Central Bank’s ability to defend the current exchange rate unless reserves are utilized.
  2. Any disruptions in electronic payment systems or delays in printing new currency could undermine trust in the Bank’s ability to execute its strategy.

Conclusion
Relying on information as a monetary tool reflects a strategic shift in the Central Bank’s management. The aim is to build trust, reduce speculation, and steer the economy toward stability. However, achieving complete success requires addressing external challenges and enhancing coordination between monetary and fiscal policies.

Economic Expert Ibrahim Wali: The Central Bank of Libya Today

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The economic expert Ibrahim Wali authored an article discussing the Central Bank of Libya, emphasizing that the institution is far more than just a governor, deputy governor, and staff. It represents a collective of minds with scientific knowledge and extensive expertise in monetary, economic, commercial, and legal matters. Operating as a structured institution, the bank possesses wide-ranging powers and independence, enabling it to fulfill its purpose in line with global standards for central banks. This equips it to monitor and adapt to developments in central banking both locally and internationally.

Wali highlighted the increasing global trend toward ensuring the independence of central banks, particularly when coupled with patriotism and competence. He underscored the importance of merit-based appointments in central banks, devoid of the scourge of nepotism, selecting individuals with comprehensive knowledge and extensive experience in banking, especially in central banking operations.

He also stressed that expertise in other economic, monetary, financial, and legal areas is essential. Globally, central bankers view managing a central bank as an art form, requiring not only knowledge but also inherent talent honed through learning and experience. This blend of talent, independence, and informed decision-making has been the cornerstone of the success of renowned central banks, whose decisions and announcements are closely monitored by millions worldwide.

Unfortunately, Wali lamented, since the Central Bank of Libya was stormed by military forces, it has become a playground for opportunists, power brokers, and fraudsters. The bank, once a pillar of the Libyan banking system, has lost its prestige and respect. This decline is not limited to the institution itself but extends to its governor, board members, and employees, who face immense pressures and threats from those who disregard banking laws and the objectives of the Central Bank.

He argued that it is time to free the Central Bank of Libya from these intrusions and government interference, while ensuring harmony and coordination among monetary, fiscal, and trade policies. He specifically criticized the “dormant Ministry of Economy” and called for monetary policies that align with broader economic goals.

Wali stressed the urgency of allowing the Central Bank to independently make decisions regarding the regulation of the banking profession, liquidity management, exchange rate monitoring, and the improvement of banking services for ordinary citizens.

Moreover, he advocated for reforming the Central Bank’s human resources systems, offering financial and non-financial incentives to attract top talent. Without such changes, Wali warned, the bank risks losing its governor, board members, employees, and the entire Libyan banking sector, potentially reverting to outdated and ineffective practices—a scenario he hoped to avoid.

African Energy Reveals Gaddafi’s Secret Investments as Libya Lays Claim: Here Are the Details

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The “African Energy” website has disclosed Libya’s demand to the U.S. Departments of State and Treasury in Washington for more than $60 billion worth of Libyan assets, which Tripoli claims were secretly invested in U.S. Treasury bonds by the regime of Muammar Gaddafi.

According to the site, a delegation led by LarMo’s General Director for the Recovery and Management of Libyan Assets, Mohamed Al-Munsali, is expected to meet with U.S. officials in early December to demand the funds. The site cited a knowledgeable source saying that the existence of these assets had remained unknown until now.

The report noted that, starting in the 1990s, the funds were funneled through a complex network to be secretly invested in U.S. Treasury bonds, defying strict sanctions imposed by Washington and other nations on Libya.

Hundreds of bonds were reportedly purchased, some of which have matured while others remain active. This practice continued until shortly before the fall of the Gaddafi regime in 2011. Investigations by LarMo revealed that these funds were never returned to Libya.

The site reported that most of these assets, including bank accounts holding proceeds from expired bonds and coupon payments, are housed in financial institutions based in the U.S. Midwest. These deposits could form a significant portion of the capital requirements for some smaller banks.

It also highlighted concerns within LarMo that these institutions might resist returning the funds due to the potential instability this could cause in parts of the U.S. financial system.

In many cases, ownership of the assets remains unclear. In one instance, a U.S.-registered company, owned by a now-deceased Libyan from Misrata, holds three bonds worth $800 million. The heirs of the original owner are cooperating with LarMo.

The site further revealed that the discovery of these bonds was made through analyzing data extracted from floppy disks found in the home of Gaddafi’s son-in-law and internal security chief, Ahmed Sanussi, shortly after the 2011 revolution. The disks contained CUSIP numbers for the bonds, detailing the securities’ types and maturity dates.

LarMo investigators, with the help of British expert Jonathan Beerman, traced the chain of European business fronts and banks used to channel Libyan funds to the United States.

The report clarified that these bonds are separate from Libya’s frozen sovereign wealth, estimated at $200 billion. This wealth includes real estate, bonds, and financial instruments held in banks worldwide.

The Libyan Investment Authority (LIA) hopes that the UN Security Council will soon lift the freeze on its $70 billion portfolio, enabling it to make new investments and justify current losses, according to the report.

Exclusive: The Central Bank Sends 50 Million to Benghazi to Support Sahara Bank and North Africa Bank Treasuries

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The Central Bank of Libya exclusively revealed to our source that a flight has just departed from Tripoli to Benghazi carrying a cash shipment valued at 50 million dinars. Of this amount, 20 million has been allocated to support the treasuries of Sahara Bank branches in the city, and 30 million is designated for North Africa Bank branches.

This initiative was undertaken under the directives of the Governor of the Central Bank of Libya, Nagy Issa, and his deputy.