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Exclusive: Parliamentary Source to Sada: House Financial Committee Approves Central Bank’s Proposal to Adjust Exchange Rate, and Here are the Details

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A source from the House of Representatives exclusively revealed to our source that the Financial Committee of the House of Representatives has approved the proposal of the Central Bank of Libya to impose a 27% fee on the exchange rate to be the applicable rate.

Starting from next week, the exchange rate will be between 5.95 dinars to the dollar and 6.15 dinars, lifting all restrictions and covering all requests for personal purposes, credits, and transfers by banks.

Italian Website: International Funds Allocated for Derna Residents Spent for ‘Personal’ Purposes in Eastern Libya

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An Italian website reported today that Libya’s economic prospects remain positive in the short and medium term, largely due to relatively high oil prices. The site pointed out several problems in Libya, including the lack of a clear economic vision and the absence of economic diversification beyond the oil and gas sector. It emphasized the importance of establishing more effective mechanisms to combat corruption and money laundering.

At the same time, the site highlighted a report from the International Monetary Fund confirming the increasing corruption and organized crime among those in power. The Central Bank of Libya, according to the report, is at the center of patronage networks, regulating the banking sector and determining the distribution of oil revenues between the authorities in eastern and western Libya.

Financial Corruption:

The Italian site explained that the family of the commander of the Libyan National Army, Khalifa Haftar, in eastern Libya has a strong influence on economic and financial institutions, making supported loans and appointments to key positions possible for individuals close to Haftar’s family in a dynamic that contributes to the growth of the Libyan economy through illicit trafficking.

The site continued by stating that Haftar and his sons have been found to use international funds allocated to Derna for personal purposes. In response to these dynamics, the United Nations Security Council issued Resolution 2702 on October 30, 2023, emphasizing the need for democratic elections in Libya.

According to the site, the Security Council resolution stresses that “reconstruction aid must be managed and distributed transparently with effective controls and accountability to the Libyan people.”

Illicit Trafficking:

The site pointed out that officially, the European Union does not consider the Tarek bin Ziyad Brigade a suitable partner in border management. Recently, a spokesperson for the European Commission stated that these “armed groups” are under the command of Khalifa Haftar and are also known in Libya for their close ties to Russia and the United States. Additionally, Tarek bin Ziyad is involved in various illicit trafficking operations, including drugs, gold smuggling, and fuel.

According to reliable reports, the Tarek bin Ziyad Brigade participates in migrant smuggling and monitoring maritime borders. It also organized the boat trip that sank in Greece last June, resulting in the deaths of around 600 people.

Exclusive: Al-Kabeer Proposes Exchange Rate Adjustment with Foreign Currency Tax in Important Correspondence to Aguila Saleh

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Our source has obtained a letter from the Governor of the Central Bank of Libya to the Speaker of the House of Representatives regarding a proposal for several measures to address several issues, including adjusting the exchange rate by imposing a 27% tax on all purposes except for sectors that transfer from the public treasury.

The exchange rate will be subject to the tax ranging between 5.95 dinars to the dollar and 6.15 dinars to the dollar, with the tax being reduced or increased depending on revenue circumstances and expenditure developments, as this rate is also to achieve complete stability in the parallel market with the continued demand that is unmonitored and from an unknown source in the market, the speed of approving a unified budget and rationalizing the general agreement and reviewing some financial policies, and addressing the unidentified parallel agreement, and the decision of a unified government and unifying public spending.

Exclusive: Abdullah Al-Hassi: “Can the Central Bank Defend the New Exchange Rate if it Occurs?”

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The economic expert Abdullah Al-Hassi spoke to our source about the increase in the exchange rate, saying: “After the circulating and almost confirmed news about changing the exchange rate to 5.90 dinars per dollar, there remain several questions, the most important of which is: Can the central bank defend this new rate if it occurs? If the answer is yes, then I expect the exchange rate to partially stabilize above the official rate by a not significant margin. However, if it cannot defend this value and cannot provide the required currency, then the exchange rate difference will continue to rise, possibly reaching high levels that we have not seen in a while.”

He added: “The other logical question is, will the executive bodies east and west stop consumption spending and employment? If spending does not stop, it is expected that the demand for currency will increase, putting the central bank in a new challenge to confront the expenditures required by governments and thus the pressure on the currency obtained from oil sales.”

Al-Hassi said during his speech: “Regardless of any of the scenarios, the ordinary citizen will continue to bear the direct cost, due to political conflicts and economic challenges, and this exchange rate deterioration will not stop except with bold and sustainable corrective measures.”

Exclusive: Mohammed Al-Sanussi: “Al-Kabeer’s Repetition of Past Mistakes, Risks of Taxing Exchange Rate, and Closure of Personal Items System Explained”

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Speaking exclusively to Sada Economic Newspaper, Mohamed Al-Sanussi, a faculty member at Misrata University, discussed the reasons for closing the personal items system. He said: “It seems that the Central Bank Governor has set a monthly ceiling for personal items, perhaps not exceeding $800 million monthly. It also seems that he allocated the same amount for credits so that the total monthly ceiling for foreign currency sold by the central bank would be $1.6 billion, because, according to rumors, the central bank has allocated $15 billion this year for credits and personal items, knowing that what was sold last year exceeded $21 billion according to central bank data.”

He added: “Unfortunately, the central bank governor is committing the same mistakes as those committed in the years from 2014 to 2018 by granting dollars at an official rate to some traders while forcing citizens to buy them at the black market rate, which is expected to increase further due to his uncalculated and illogical decisions. Unfortunately, the beneficiaries of the February credits are the same names that benefited from the credits in the years when the official rate was 1.50 and the black market rate reached 10 dinars.

Here, we wonder about the capital of the company that receives credits worth $20 million in less than a month, equivalent to 100 million dinars? Shouldn’t the Attorney General intervene and follow up on this matter?”

He also said: “We also wonder about setting a ceiling for personal items. According to central bank data, the number of registered individuals is 700,000 citizens, while those who actually shipped are only 200,000 citizens, which means that there are 500,000 citizens who want to obtain hard currency, perhaps for tourism, Umrah, or importing certain goods, and now they have to wait until the end of the month or buy from the black market, which will lead to an increase in the exchange rate in the black market, which is never justified or acceptable. So, what prevents the central bank from allocating the value to all these individuals? In the end, they will not be able to ship again until the end of the year, because this value of $4000 is an annual value.”

Regarding the news related to adjusting the exchange rate, Al-Sanussi said: “I believe that adjusting the exchange rate is unlikely in the presence of the current governor because he is not convinced of adjusting the exchange rate and is more convinced of imposing quantity restrictions on hard currency, as he did in the past years, despite praising the decision to adjust the exchange rate in his letter to the Prime Minister, where he said that this adjustment contributed to achieving monetary stability in the years 2021 and 2022. Therefore, I believe that the central bank should follow at least the announced special rate policy to be able to eliminate the black market, provided that the dollar is provided to everyone at this rate and does not repeat the same mistake that occurred when the rate was adjusted to 4.50, where quantity restrictions and illogical conditions on credits continued.”

He continued, saying: “As for the news circulating about adding a tax to the exchange rate, not adjusting the official rate, this is a wrong decision that will lead to increased spending because the government, whether the eastern or western government, if it imposes this tax, will receive revenues that will make it spend more as happened in 2018.”

Al-Sanussi concluded by saying: “Solving economic problems requires a set of steps, the most important of which are:
1: The House of Representatives should adopt a budget for the government, and spending should only be made based on the approved budget, focusing on reducing spending and increasing investment.
2: Stop the process of exchanging oil for fuel, and purchase fuel according to the approved budget and transfer all oil sales revenues to the central bank.
3: The central bank should increase the value of personal items to $10,000 as it was last year and allow anyone who requests this value to obtain it without a monthly ceiling.
4: The oil institution must make double efforts to increase oil production to higher levels.
5: The Audit Bureau and the Attorney General must take greater and stronger measures to hold accountable all those involved in corrupt practices that filled the pages of the Audit Bureau reports in past years, and the judiciary must hold accountable anyone charged with these crimes, because punishment for these individuals will deter anyone thinking of theft and corruption.”

Exclusive: Aman Bank Unveils Number of Beneficiaries and Registrants in the Personal Items System

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Aman Bank disclosed in an exclusive statement to our source the number of beneficiaries in the Personal Items System for the year 2024 as of today, which is 8165 accounts.

The bank also stated that the number of pending requests is 6074 accounts as of the end of March 31, 2024, and that the number of activated and matched accounts, which can reserve the allocation when the reservation system is opened, is 69,719 accounts.

Additionally, the total number of accounts for personal items cards is 970,000, and they have been provided with IBAN numbers.

Insights from Deputy Director: 50 Dinar Currency Details and Credit Status

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Deputy Director of the Research and Statistics Department at the Central Bank of Libya, Ali Al-Mabrouk, revealed in an audio statement to Libya Al Ahrar TV, as monitored by Sada Economic newspaper, the availability of recently discovered counterfeit currency in abundance in the markets, causing pressure and high demand for foreign currency.

Al-Mabrouk also affirmed that the Central Bank will not withdraw the 50 Dinar note. Additionally, he mentioned that the closure of oil resulted in a decline in the exchange rate of the dinar, in addition to several measures taken previously.

Al-Mabrouk also denied rumors of suspending documentary credits and emphasized the functioning of its system, indicating the number of registrants in the personal individuals system exceeded 670,000, with the number of those who completed procedures for charging personal individuals cards exceeding 100,000 citizens.

Al-Mabrouk reassured citizens by saying that the country’s financial situation is not catastrophic, but at the same time, we must be vigilant.

Exclusive: Central Bank Sends 45 Million to Branches of Wahda Bank in Eastern Region

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The Liquidity Team at the Central Bank of Libya exclusively revealed to our source its commencement of transferring liquidity shipments to all regions in Libya starting from today, Sunday.

Moments ago, a liquidity shipment worth 45 million dinars arrived at Benghazi’s Benina Airport from the Central Bank of Libya in Tripoli to support the balances of branches of the Wahda Bank. The Liquidity Team confirms its continuation in transferring the shipments.

Exclusive: Al-Kabeer’s Important Message on Withdrawing the 50-Dinar Denomination

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Our source obtained a correspondence from the Governor of the Central Bank of Libya to the members of the Financial Committee of the House of Representatives regarding the central bank’s initiation of a plan to withdraw the 50-dinar denomination.

This comes out of concern over the increasing rates of counterfeiting, its continued circulation, and the widening scope of its trading, making it difficult for citizens to distinguish. Additionally, the 50-dinar denomination is considered a currency hoarded by the public and used in some illegal activities.

It causes significant damage to the economy and affects the exchange rate of the dollar.

According to the governor, it will be withdrawn according to a mechanism that will be announced later, and the acceptance and deposit of this denomination will be subject to regulations and procedures related to money laundering and terrorism financing, especially those that occur after the withdrawal decision, while emphasizing the central bank’s keenness to address all the reasons for achieving financial stability for the state.

Exclusive: Al-Kabeer Establishes Special Committee for Foreign Currency Sales – Unveiling the Inside Story

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Our source has exclusively obtained a decision by the Governor of the Central Bank of Libya to form a committee chaired by the Director of Banking and Currency Supervision Department.

The committee is tasked with studying the demand for foreign currency and the available revenues, aiming to achieve balance in the balance of payments by the end of the year, and approving bank requests according to the regulations set forth in the publications of the Central Bank of Libya.

The team also oversees the foreign exchange system and submits any necessary proposals to the governor as deemed necessary by the committee.

Exclusive: Rovinetti Sounds Alarm on Libya’s Economic Crisis: A Wealthy Nation with Limited Leadership Funds

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The Italian strategic expert, Daniele Rovinetti, stated to tour source today, Friday, that it is certain that the gap between the Government of National Unity and the eastern Libyan government is creating a security alarm, as indicated by some recent military movements, but primarily it’s also economic.

Rovinettipointed out that this division exacerbates the economic conditions, as theoretically, it’s a wealthy country in natural resources and commercial capacity, yet its leaders have only a small portion of available funds to work with.

He added to that if this conflict continues, we will likely drift towards a crisis that could lead to an economic crisis, threatening to have a deep social impact on all internal movements and balances.

Exclusive: Al-Huwaij Elaborates to Sada on Reasons for His Statement About 40% of Libyans Below Poverty Line & Government Response

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In an exclusive statement to the Minister of Economy and Trade, Mohamed Al-Huwaij, said to our source: “What we mentioned in a previous statement regarding indicators indicating that 40% of the Libyan people are below the poverty line according to international standards. These indicators have been pointed out by a number of economic experts.”

He continued: “After the National Unity Government assumed its responsibilities, it began taking a series of measures, including, for example, doubling salaries. The aim of the statement was to clarify the measures to address the sudden impact on the purchasing power of the Libyan dinar due to its devaluation, which is significant for a society where around 30% of its population relies on salaries. Our government sought to address this by increasing salaries, as well as ensuring security stability, which played a major role in the flow and stability of prices of goods, and resolving all the issues that citizens faced in the stability of electricity.”

He added: “The government also worked on abolishing customs duties on food items to support citizens, along with ensuring the flow of fuel to all cities in the country.”

Al-Huwaij clarified that the Libyan economy is experiencing continuous and real growth, and we, at the Ministry of Economy of the National Unity Government, are determined to implement economic measures that improve the lives of our honorable citizens.

Exclusive: Central Bank Announces Sunday Holiday in Celebration of February Revolution

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Our source has exclusively obtained a communication from the Central Bank of Libya to commercial banks, informing them that next Sunday, February 18, will be an official holiday in celebration of the February 17 Revolution, with work resuming on Monday, February 19.

The Human Resources Management of the Central Bank of Libya also circulated to bank employees that February 18, Sunday, will be a holiday, with their work resuming on Monday, February 19.

Exclusive: Ministry of Economy Notifies Customs to Temporarily Halt All Export Operations

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Our source has obtained a communication from the Ministry of Economy’s deputy to the Director-General of Customs, that included the temporary suspension of all export operations until coordination with relevant authorities to ensure compliance with all export regulations.

It also ensures the return of hard currency obtained by companies in supplying raw materials and operational requirements to the banking system after executing export operations in coordination with the Central Bank of Libya.

Exclusive: Central Bank Source to Sada: Part of Salaries to be Executed Through ‘Aysar’ Project, and Here Are the Key Details

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Our source from the Central Bank of Libya revealed that part of the January salaries will be executed through the “Aysar” project, while the remaining part will be processed through referrals to the sectors.

Aysar project is aimed at accelerating salary disbursement within one day, replacing manual procedures that take several days.

Additionally, the Central Bank of Libya exclusively informed Sada newspaper about receiving authorization for the disbursement of January salaries for all sectors and commencing their referral to sectors and banks starting from today, Tuesday.