Reuters reported on Friday, citing the Central Bank of Libya, that it has contracted with the British company De La Rue to print 30 billion dinars ($6.25 billion) in an effort to address the liquidity shortage in the country’s commercial banks.
The Central Bank stated last Sunday that the liquidity crisis would be resolved “gradually” starting next January, as part of a plan approved by the Board of Directors.
Reuters highlighted that despite its oil wealth, Libya has faced a liquidity shortage for years. Citizens have been forced to queue outside banks to access cash since the fall of Muammar Gaddafi’s regime in 2011.
The report added that Libya’s economy relies heavily on oil revenues, with state employee salaries making up the largest share of expenditures. Salaries totaled 48.6 billion dinars from January to October, out of total oil revenues of 67.8 billion dinars during the same period, according to Central Bank data.
The Central Bank stated that its governor, Seddiq Al-Kabeer, met on Wednesday with De La Rue CEO Clive Vacher and the company’s regional director, Michael Wilson, to discuss the contract’s implementation.
The meeting also addressed the schedule for receiving various currency shipments, according to Reuters.
The Central Bank plans to withdraw old banknotes according to a specific timeline but did not disclose further details.
