Exclusive: The report of the Banking and Monetary Supervision Department on Commercial Banks’ Uses of Foreign Exchange

Our source obtained exclusively the report of the Banking and Monetary Supervision Department on Commercial Banks’ Uses of Foreign Exchange during the period (1/1 – 28/2/2023)

The total uses of foreign exchange by banks from 1/1 – to 28/2/2023 amounted to about $3,078,886,837 compared to $2,676,748,043 during the same months of 2022, with an increase of about $402,138,794 million, and a growth rate of 15.0%.

The letter of credits accounted for 56.3% of total bank uses of foreign exchange, personal purposes accounted for 42.4% of total bank uses of foreign exchange, while transfers accounted for only 1.3% of total uses.

The actual banks’ uses of foreign exchange for all purposes ” Million USD ”                           

Amounts sold to banks in foreign exchange for all purposes:

Within the framework of the Banking and Monetary Supervision Department’s follow-up to the accepted purchase requests for letter of credits and remittances, submitted by commercial banks through the system for following-up requests for coverage, and foreign exchange sales for personal purposes, in accordance with the decision of the Board of Directors of the Central Bank of Libya No. (1) of 2020 regarding amending the exchange rate of the Libyan dinar and Banking and Monetary Supervision Department Circular No. (9/2020).

The total amounts of foreign exchange sold to banks from 1/1 – to 28/2/2023, through the system for following up purchase and coverage requests, and foreign exchange sales for personal purposes at the Central Bank of Libya, amounted to about $3,078,886,837 compared to $2,676,748,043 during the same months of 2022, with an increase of about $402,138,794 million.

According to  the table below, which illustrates the values sold of foreign exchange by banks, it is clear that National Commercial Bank was the most bank purchased foreign exchange from 1/1 – to 28/2/2023, maintaining its first rank among the banks with relative importance of 14.7%, as the total amounts of foreign exchange used was about $452,717,358, followed by Al Yaqeen Bank with a value of $393,553,280, ahead of Al Aman Bank for Trade and Investment, which was in third place with a value of $381,211,064. Then Jumhouria Bank ranked fourth with a value of $370,523,114, then the following banks come in terms of relative importance in order: Al-Wahda Bank, Al-Nouran Bank, the Libyan Islamic Bank, the United Bank and the Sahara Bank, etc. of the banks as shown in the table below, which also contains the order in which they were Banks during the same period last year 2022.

Ranking of banks according to the total amounts sold of foreign exchange

Amounts sold to banks in foreign exchange.

(According to purpose)

“In of USD”

Second: Accepted bank requests to cover Letters of Credits and transfers, except for personal purposes, from 1/1 – to 28/02/2023: The number of companies, factories, public entities and other entities reached (855) whose applications were approved to purchase foreign exchange from 1/1 – to 28/02/2023, with a number of applications amounting to 2400 applications. Most of these applications were made to cover letters of credits, which was 2099 applications, 87.5% of the total: as shown in the following table:

Banks’ requests to cover letters of credit and transfers

(According to the beneficiary countries)

The  table below shows the values of banks’ requests to purchase foreign exchange by beneficiary countries from1/1 – to 28/02/2023, it is clear that 44.4% of bank transfers to cover letters of credit or other transfers were to the United Arab Emirates, whereas Turkey was in second place with a rate of 8.1%, followed by Switzerland and Tinisia with rates of 5.7 % and 5.6%, respectively.

Banks requests to buy foreign exchange

 (According to the countries of origin for the goods or services)

The  table below shows the values of banks’ requests to purchase foreign exchange by goods or services origins from 1/1 – to 28/02/2023, It is clear that Egypt ranked first, as goods or services of Egyptian origin accounted for 18.8% of the total accepted purchase requests. Imports of goods or services of Turkish origin came in second place, accounting for 18.1% of the total, and goods or services of Chinese origin accounted for 9.8% ranked third during the period, while goods and services of Tunisian origin accounted for 6.5%, and those of Indian origin accounted for 6.0%. The following table shows twenty countries of origin for goods or services.

Accepted bank requests to buy foreign exchange according to sectors

From 1/1 – to 28/02/2023

Private sector:

The number of private sector companies and factories were (806) whose requests foreign exchange to cover letter of credits and other transfers were approved, they constituded of 769 companies and 37 factories from 1/1 – to 28/02/2023. Banks’ requests to purchase foreign exchange by the private sector to import production and operation requirements ranked first among total purchase requests during the period, accounting for 13.1% of total foreign exchange purchase requests. While the requests to cover the import of raw materials for the requirements of the aluminum and PVC industry ranked second in terms of relative importance, constituting about 5.4%, whereas the requests to cover the import of durum wheat accounted for 4.0% and the import of iron 4.0% of the total, and the following table shows the purchase requests for the fifty most important commodities or services during the period from1/1 –  to 02/28/2023.

Purchase orders for the fifty most important goods or services – Private Sector

From 1/1 – to 28/02/2023

Purchase orders according to the fifty most important companies – Private Sector

From 1/1 – to 28/02/2023

Public Sector

The number of public sector companies whose requests for foreign exchange to cover letters of  credits and other transfers were approved reached 23 companies from 1/1 – to 28/02/2023. Where banks’ requests to purchase foreign exchange by the Social Solidarity Fund to supply cars for people with disabilities, ranked first in total purchase requests during the reported period, accounting for 26.3% of the total foreign exchange purchase requests, while the requirements of Libyana Mobile Phone Company ranked the second with relative importance of 25.0%, whereas requests to cover the import of production and operation requirements accounted for 22.5%. The following table shows purchase requests from 1/1 – to 28/02/2023.

Purchase orders by commodity or services – Public sector

From 1/1 – to 28/02/2023

Purchase requests by entities – Public sector

From 1/1 – to 28/02/2023

Banking Sector:

Accepted Coverage Requests – Banking Sector

From 1/1 – to 28/02/2023

“Descending order”

According to Goods and Services – Banking Sector

“Descending order”

According to Country of Origin – Banking Sector

“Descending order”

According to Beneficiary Country – Banking Sector

“Descending order”

Foreigners (salary transfers):

Accepted Coverage Requests

Foreign Transfers – Salaries

From 1/1 – to 28/02/2023

According to Beneficiary Country – Foreign Transfers (Salaries)

Private Sector Appendices

Accepted coverage requests for the private sector from 1/1 – to 28/02/2023:

List of all beneficiary companies and factories

Purchase Orders by Goods or Services

Purchase orders by country of origin of goods or services and the beneficiary country.