Our banking source confirmed that the foreign exchange system will be opened on January 1 for all purposes.
The Central Bank’s administration is reportedly ready to begin operations normally, according to the source.
The Chairman of the Board of Directors of the National Commercial Bank, Khaled Al-Hassi, stated in a comment to our source, on the occasion of the bank’s 70th anniversary, that nearly 7 billion dinars have been settled, and provisions have risen to approximately 1.3 billion dinars to address any potential issues. This instills confidence in external correspondents when dealing with the commercial bank in foreign transactions.
Al-Hassi added that the bank’s budget is expected to exceed 500 million dinars in profits during 2024, for the first time since its establishment. This comes after avoiding the anticipated tax expenses. He further clarified that most branches in the southern region have been renovated, and some young university graduates have been hired to enhance the workforce.
Al-Hassi emphasized that the bank has settled the situation for its employees, added more than 300 ATM machines, and now has machines for both Libyan dinars and foreign currencies. He added that the bank is working on including some banks, oil companies, and insurance companies to obtain certificates in banking operations in various economic fields, including risk management, Islamic banking, and others.
Concluding his statement to our source, Al-Hassi said: “I believe that today, especially in this month, we are the only bank in Libya paying the equivalent of 2,000 dinars, unlike other banks. Moreover, all machines are functioning efficiently with financial provisions and operate 24 hours a day.”
The economic expert, Misbah Al-Akari, wrote an article in which he stated: “An amount of cash exceeding 70 billion Libyan dinars is circulating in the local market outside the banking system. This massive amount has become subject to trading in a very peculiar phenomenon referred to as “burning.”
The rise in government spending, which surpassed 84 billion dinars—of which 57 billion is allocated to salaries—has necessitated the availability of rapid payment tools to avoid further financial complications, including the ongoing liquidity issue. Addressing this challenge requires introducing the payment tools available in the Libyan banking system, which include:
The Central Bank of Libya reported the following results for these payment tools:
A total of 121 million electronic transactions were conducted, amounting to 104.9 billion dinars. Meanwhile, cash distribution this year reached 59 billion dinars.
From these figures, it is evident that the solution to the liquidity problem lies in gradually transitioning to alternative payment tools, as detailed above. This would reduce dependence on cash. Currently, cash withdrawn from banks is spent in retail stores and does not return to the banking system. Instead, it becomes a traded commodity, often resold to citizens at a markup of up to 35%.
Despite the governor’s directives for commercial banks to reduce fees to 1–1.5%, Libyan citizens still complain about high fees. This is attributed to clear exploitation by some retailers and non-compliance by certain banks with these instructions.
We urge the Banking Supervision Department to monitor the issue of fees and call on relevant authorities to address the exploitation of excessive fees by some merchants. Strict enforcement can help support this strategic transition to alternative payment methods.”
