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 ”                           

Expense	From 1/1 to 28/02 of 2022	From 1/1 to 28/02 of 2023	Change in value	Percentage change
Letters of Credits	1,617,993,788	1,732,107,206	114,113,418	7.1
Transfers	15,512,179	42,387,668	26,875,490	173.3
Personal uses	1,043,242,076	1,304,391,963	261,149,887	25.0
Total	2,676,748,043	3,078,886,837	402,138,794	15.0

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:

Transfer type	Number of requests	Relative Importance %
Letters of Credits	2099	%87.5
Commercial Transfers	107	%4.5
Airlines Transfers	73	%3.0
Other Transfers	68	%2.8
Insurance Transfers	31	%1.3
Salary Transfers – Foreigners	22	%0.9
Total	2400	100.0 %

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.

Order	Beneficiary Country	Value in USD	Relative Importance %
1-	United Arab Emirates	860,329,014	44.4
2-	Turkey	156,098,175	8.1
3-	Switzerland	110,939,579	5.7
4-	Tunisia	109,163,426	5.6
5-	China	100,972,990	5.2
6-	Italy	86,236,403	4.5
7-	South Korea	78,558,946	4.1
8-	Egypt	51,961,063	2.7
9-	Spain	47,987,357	2.5
10-	Hong Kong S.A.R.	44,885,494	2.3
11-	United Kingdom	38,556,933	2
12-	Thailand	25,057,797	1.3
13-	Germany	24,049,384	1.2
14-	Austria	24,000,378	1.2
15-	Netherlands	22,488,141	1.2
16-	France	18,920,244	1
17-	Canada	10,256,714	0.5
18-	Japan	10,155,027	0.5
19-	Sweden	9,351,522	0.5
20-	Belgium	7,822,227	0.4

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.

Order	Country of origin of goods or services	Value in USD	Relative Importance %
1-	Egypt	363,179,649	18.8
2-	Turkey	350,177,437	18.1
3-	China	189,749,218	9.8
4-	Tunisia	125,707,046	6.5
5-	India	116,333,277	6
6-	Russian Federation	112,146,618	5.8
7-	South Korea	70,454,512	3.6
8-	Italy	59,866,529	3.1
9-	Ukraine	52,963,860	2.7
10-	United Arab Emirates	49,889,553	2.6
11-	Germany	44,977,829	2.3
12-	Brazil	30,888,123	1.6
13-	Spain	30,035,510	1.6
14-	Thailand	26,353,462	1.4
15-	United States	25,227,049	1.3
16-	Argentina	24,705,475	1.3
17-	Netherlands	21,484,414	1.1
18-	Hong Kong S.A.R.	21,449,638	1.1
19-	Europe	15,590,895	0.8
20-	Belgium	14,732,632	0.8

Accepted bank requests to buy foreign exchange according to sectors

From 1/1 – to 28/02/2023

Sector	Number of companies, factories, or entities
Private Sector	806
Public Sector	23
Banking Sector	3
Foreigners (Salary Transfers)	23
Total	855

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

Order.	Goods or services	Value in USD	Relative Importance %
1	Production and operation requirements	226,201,784	13.1
2	Raw materials for aluminum and PVC industry supplies	92,998,461	5.4
3	Durum wheat	70,042,385	4.0
4	Iron	69,510,431	4.0
5	Sugar	59,425,358	3.4
6	Electronic Equipment	55,227,492	3.2
7	Cars	45,507,474	2.6
8	Cleaning materials	42,403,960	2.4
9	Maize	41,813,600	2.4
10	Building materials	39,755,158	2.3
11	Mobile phones and their accessories	39,520,777	2.3
12	Cooking oil	38,798,903	2.2
13	Agricultural machinery	36,902,840	2.1
14	Soft wheat	33,604,278	1.9
15	Carton	31,851,906	1.8
16	Tuna	30,685,654	1.8
17	Building materials for floors and tiles	28,142,455	1.6
18	Refrigeration and Air Conditioning Appliances	26,257,955	1.5
19	Barley	24,698,000	1.4
20	Other Furniture	22,401,233	1.3
21	Miscellaneous electrical appliances	22,133,196	1.3
22	Packaging materials and papers	22,041,170	1.3
23	Soy	21,468,066	1.2
24	Tomato paste	21,438,251	1.2
25	Grilles	21,433,048	1.2
26	Biscuits, chocolate and sweet	20,580,742	1.2
27	Tires	19,796,559	1.1
28	Packaging Paper	19,731,092	1.1
29	Frozen meat	18,560,281	1.1
30	Medicine	18,242,895	1.1
31	Poultry and frozen poultry meat	17,898,930	1.0
32	Baby Milk	17,738,936	1.0
33	Cigarettes and tobacco of all kinds	16,922,227	1.0
34	Medical Equipment	16,353,690	0.9
35	Electronic Equipment	15,482,780	0.9
36	Oxes	14,453,323	0.8
37	Wood	14,373,000	0.8
38	Refractory bricks	13,859,057	0.8
39	Diapers	13,340,708	0.8
40	Feeds	12,677,855	0.7
41	Milk powder	11,936,511	0.7
42	Processed cheese	11,604,219	0.7
43	Empty cans	10,401,023	0.6
44	TV screens	10,243,601	0.6
45	Automotive Oils and Machinery	9,819,247	0.6
46	Household and Electrical Materials	9,642,229	0.6
47	Evaporated milk	8,457,337	0.5
48	Tea	8,449,779	0.5
49	Agricultural Production Requirements	7,614,107	0.4
50	Computers and Accessories	7,425,127	0.4

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

From 1/1 – to 28/02/2023

Order.	Company or factory	Value in USD
1	Al Bonyan Company for Smelting and Rolling Metals	37,875,965
2	Almaosem Company for Food Industries and Rice Mills	34,017,845
3	Haoth Shamal Afriqyah Company for the manufacture, desalination and bottling of drinking water	26,112,400
4	Al Naseem Food Industries	23,160,384
5	Alduda Alalameyah Alola Company for Feed Industry, Flour Mills and Food Industries	21,818,420
6	Al Mamoura Alola Company for Importing Foodstuffs	19,218,104
7	Doroob Libya Company for Importing Transportation Vehicles and Accessories	17,778,785
8	Alwesam Adahabee Company for the manufacture of flour, mills, feed and rice mills	17,775,800
9	Wadi Al-Kouf Company for Mills, Feed and Rice Mills	17,293,300
10	Almotahadah Aljadeed Company for Tobacco, Cigarettes and Accessories	13,449,714
11	Badya Al Khair Company for Mills, Feed and Pasta	13,371,780
12	Bonyan Libya Almostakbal Company for importing electrical and non-electrical appliances and materials, spare parts and appliances	13,113,956
13	Al-Rayhan Company for Food Industry	12,918,756
14	Aljahez  Company for Importing Foodstuffs	12,731,200
15	Thel Ateen Company for the manufacture of dairy and its derivatives	12,502,000
16	Jood Alola Company for Importing Raw Materials	12,347,628
17	Alasalla Adahabyah Company for Mills and Rice Mills	12,309,000
18	Al-Roken Company for Aluminum Industry	11,957,378
19	Al-Ikhtar Company for PVC Industry	11,744,103
20	Alrokon Alelektroni Company for the manufacture of electronic and electrical devices	11,656,554
21	Al-Raed Group Company for Importing Raw Materials	11,545,600
22	Al-Jayed Food Industries Company	11,360,165
23	Alafdal Company for Raw Materials	10,841,400
24	Adwaa Al Nayzak Company for importing electronic devices, accessories and spare parts	10,484,991
25	Al-Jayed Food Industries Company	10,401,924
26	Afaq Algad Aljadeed Company for the import of electrical and non-electrical devices and materials and spare parts	9,930,650
27	Arafeek Addaeam Company for Importing Cars and Spare Parts	9,877,170
28	Ibtahj Atabeesa Company for Importing Foodstuffs	9,770,000
29	Toyota Libya Automotive and Spare Parts Trading and Import and Export	9,693,967
30	Al-Itqan Group Company for the manufacture of cleaning materials	9,429,930
31	Lamsat Alhayah Company for importing medical equipment, medicines, medical preparations, mother and child supplies	9,406,740
32	Sama Almarai Company for Mills, Feed Industry and Rice Mills	9,130,237
33	Nibras Al-Khair Company for Feed Industry and Grain Milling	9,088,080
34	Al Sadd Company for Animal Feed Industry	8,800,000
35	Tarabulus Alkobra Company for the manufacture, packaging and packaging of tomatoes and foodstuffs	8,680,000
36	Awtar Assenaa Company for the manufacture of electronic and electrical devices	8,671,905
37	Shams Al-Watan First Company for Importing Electrical and Electronic Appliances, Accessories and Spare Parts	8,526,141
38	Al-Sawaed Company for Wood Industries	8,519,474
39	Assad Alalee Company for the manufacture of electronic devices	8,439,964
40	Tawasol Company for Paper Industries	8,167,925
41	Al Shorouq Allebyah Company for Mills and Feed	8,112,000
42	Anwar Almadenah Company for the import of electrical and non-electrical devices and materials and spare parts	8,105,267
43	Anahj Alamthal Company for Food Industries	7,871,315
44	Almosem Almotamyez Company for the manufacture of flour, feed and rice mills	7,789,839
45	Alfaeada Adahabyah Company for Food Industries	7,707,161
46	Africa Beverage Bottling Company	7,698,361
47	Sheryan Alhayah Company for Importing Foodstuffs	7,600,000
48	Asayel Libya Company for Importing Building Materials, Sanitary Materials and Accessories	7,523,260
49	Al-Rasheed Company for the manufacture of electronic and electrical devices	7,307,675
50	Almarai Alkesbah Company for Mills, Feed and Rice Mills	7,240,950

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

Order.	Goods or services	Value in USD	Relative Importance %
1	General Authority for Social Insurance Fund – Supply of cars for people with disabilities	51,900,000	26.3
2	Libyana Mobile Phone Company Requirements	49,363,211	25.0
3	Production and operation requirements	44,579,436	22.5
4	General Electricity Company Supplies	8,039,172	4.1
5	Almadar Aljadeed Company	7,887,467	4.0
6	Communications and IT Services	7,689,778	3.9
7	Electronic Devices	4,333,530	2.2
8	Housing and Utilities Projects Authority	4,061,781	2.1
9	Airline Transfers	3,403,734	1.7
10	Afriqiyah Airways	2,712,739	1.4
11	Insurance Company Transfers	2,440,191	1.2
12	Port operation and maintenance requirements	2,436,025	1.2
13	Stationery	1,994,750	1.0
14	Libya Telecom and Technology Company	1,323,811	0.7
15	Social Welfare Fund	1,300,694	0.7
16	Libyan Airlines Requests	1,232,452	0.6
17	Household and Electrical	813,828	0.4
18	Building Materials and Construction Supplies	740,896	0.4
19	Operating needs of Muamalat	634,800	0.3
20	State Company for Importing Security Goods	578,825	0.3
21	Libyan Ports Company	215,939	0.1
22	Port Operating Requirements	15,112	0.0

Purchase requests by entities – Public sector

From 1/1 – to 28/02/2023

Order.	Entity Name	Value in USD
1	Libyana Mobile Phone Company	72,327,904
2	General Authority of the Social Solidarity Fund	51,900,000
3	Administrative Centers Development Authority	20,268,177
4	Almadar Aljadded Company	14,191,141
5	General Electricity J.S.C	8,039,172
6	Afriqiyah Airways	6,116,473
7	Housing and Utilities Projects Implementation Authority	4,061,781
8	Libya Company for Communication and Technology	3,148,210
9	National Cement Company	2,604,713
10	Authority for the Construction and Maintenance of Ports and Fishing Harbors	2,315,300
11	Libya Insurance Company	2,204,431
12	General Company for Paper and Printing	1,994,750
13	Libyan International Telecommunications Company	1,732,527
14	Social Welfare Fund at the Ministry of Interior	1,300,694
15	Libyan Airlines	1,232,452
16	Aljeel Aljadded Technology Company	1,123,447
17	Systems Company for Electrical Construction J.S.C	813,828
18	Muamalat Financial Services Company	634,800
19	State Company for Importing Security Goods J.S.C	578,825
20	Alenma Electric Investment Company	380,132
21	Libyan Ports Company	351,776
22	Libyan Federation of Insurance Companies	235,760
23	Misurata Free Zone	141,878

Banking Sector:

Accepted Coverage Requests – Banking Sector

From 1/1 – to 28/02/2023

“Descending order”

Order.	Bank	Value in USD
1	United Bank for Commerce and Investment	3,193,939
2	Al Andalus Bank Company	674,944
3	Alaman Bank for Trade and Investment	385,949

According to Goods and Services – Banking Sector

“Descending order”

Order.	Goods or Services	Value in USD
1	Operating expenses for Commercial banks	3,193,939
2	Al-Andalus Bank Transfer	674,944
3	Machinery and Equipment	385,949

According to Country of Origin – Banking Sector

“Descending order”

Order.	Country of Origin	Value in USD
1	Bahrain	3,193,939
2	United States	450,000
3	France	284,539
4	Canada	200,000
5	China	101,410
6	India	20,000
7	United Kingdom	4,944

According to Beneficiary Country – Banking Sector

“Descending order”

Order.	Beneficiary Country	Value in USD
1	Bahrain	3,193,939
2	United States	650,000
3	France	284,539
4	Morocco	101,410
5	India	20,000
6	United Kingdom	4,944

Foreigners (salary transfers):

Accepted Coverage Requests

Foreign Transfers – Salaries

From 1/1 – to 28/02/2023

Order.	Entity	Value in USD
1	(22) Salary transfers for foreigners	501,552
2	Flight Transfer – Transfer of surplus sales to Tunisian services	297,058

According to Beneficiary Country – Foreign Transfers (Salaries)

Order.	Beneficiary Country	Value in USD
1	Tunisia	297,058
2	Ukraine	139,716
3	Poland	116,000
4	Egypt	86,650
5	Jordan	55,770
6	Bulgaria	47,000
7	Germany	19,580
8	India	19,500
9	Italy	11,402
10	Philippines	5,934

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.