The Central Bank of Libya confirmed exclusively to our source that it will begin, starting Tuesday, implementing a $3.5 billion foreign currency allocation program through commercial banks.
According to the Central Bank:
- $1.5 billion will be allocated to commercial banks for letters of credit (LCs).
- $1 billion will be allocated for foreign transfer requests covering various purposes.
- $1 billion will be dedicated to personal-use foreign currency reservations, including bank card allocations and cash purchases.
The Central Bank also stated that it will continue issuing new approvals for letters of credit and foreign transfers, a measure intended to help ease demand pressures and make use of oil revenues deposited with the bank.
According to the Bank, oil revenues expected to be transferred to the Central Bank during June are projected to reach $3.5 billion.
As a result, the total amount expected to be injected into the market during June for all purposes is also estimated at $3.5 billion.
The move aims to improve foreign currency availability, support trade financing, facilitate personal foreign exchange access, and reduce pressure on the foreign exchange market.
