The Central Bank of Libya confirmed exclusively to our source that it is closely monitoring market conditions, noting that several factors have contributed to the rise in foreign exchange rates. Some are temporary, such as speculation, money laundering linked to the 20-dinar banknote, and exploitation of the grace period before its withdrawal from circulation. International procedures to combat money laundering and the monitoring of international card transactions have also raised fears of reduced supply in the market.
According to the Central Bank, continued high levels of public spending and a growing deficit have increased uncertainty in the market, leading traders to expect further rises in exchange rates. Despite this, the Bank asserts it is meeting all demands and needs.
It added that the Central Bank’s plan to contain the market will begin on October 1, after the end of speculation over the 20-dinar note. The market will be regulated, and foreign currency sales to exchange companies will resume following mechanisms agreed upon during the August 3 meeting. The Bank aims to eliminate the black market and corruption before the end of the year.
It further stated: “We expect to sell $3 million monthly to exchange companies, and $1 million monthly to offices, transferred to their accounts with the Bank. We will also allow currency sales through fast transfers, card top-ups, and cash transactions within a defined margin, with valuation based on market supply and demand.”
