The Central Bank of Libya confirmed exclusively to our source that, during the upcoming four-day holiday, arrangements have been made to supply all banks in cities across Libya with cash allocations to be loaded into ATM machines.
This measure aims to ensure uninterrupted access to cash for citizens, given that banks will be closed during the official holiday.
The Central Bank of Libya has exclusively revealed to our source that it has invited the managers of commercial banks to a meeting to discuss mechanisms for dealing with exchange companies and offices, and to grant them the authority to carry out fast transfers and SWIFT (103) transfers.
The meeting will also discuss mechanisms for handling intermediary accounts held by these offices and companies at banks, the purchase of foreign currency from citizens through account-to-account transfers, and other topics that would help resume exchange activity at the beginning of the coming year.
A number of traders in the parallel market told our source that they had closed their offices in Al-Mushir Market following recent security measures taken against them, noting that the Governor of the Central Bank of Libya has so far not granted any company or exchange office final authorization to operate, nor have clear mechanisms been set to regulate the work of these offices.
The traders added that raids on the currency market are nothing new. In 2015, the market was raided by a security agency and a number of traders were arrested, and the same scenario was repeated in 2018 by another security body. They questioned the outcomes of such measures, given the persistence of the same crises.
According to the traders, the concerned authorities at times ignore oil shutdowns and currency printing, while placing the blame for rising prices on speculation in front of public opinion. They added that the current measures overlook the trade deficit, declining oil revenues, Arkno Company’s control over nearly a third of oil revenues, as well as issues related to letters of credit and bank financing, cross-border smuggling of goods, financial corruption, political division, parallel spending, and rising public expenditure.
Our sources has exclusively obtained official correspondence from the Governor of the Central Bank of Libya addressed to the Prime Minister of the Government of National Unity, the Internal Security Agency, and the Ministry of Interior. The letters call for the closure of unlicensed exchange offices that have not been granted operating permits, and include a request to Abdul Hamid Dbeibeh to instruct the Ministry of Economy to issue a decision banning import and export activities except through banking operations.
Our sources revealed that the Central Bank continues to urge all relevant parties to implement genuine economic reforms to improve the overall economic situation in a way that positively impacts citizens’ living standards. This comes through proposing a package of measures aimed at increasing the value of the Libyan dinar, ensuring the availability of cash liquidity, and reducing the general price level and the inflation rate.
Our source obtained a correspondence from the Director of the Office of the Chairman of the Presidential Council to the Director of the Central Bank of Libya. The letter requests a detailed report on the value of currency denominations distributed to all banks, specifying the branches and recipients during 2025.
It also requests a comprehensive report on the total money supply in circulation across all issuances, as well as the total value of currency printed following withdrawals and the amounts still in process.
Banking expert “Nu’man Al-Bouri” said in an exclusive statement to our source that digital transformation is not, in his view, a telecommunications problem. He added that talking about “zero cash” is a dream—there is no country in the world that operates with zero cash. He explained that he understands the Central Bank’s intent is to push toward electronic payments, but this is not a magic wand that can instantly transform the economy into fully electronic payments, especially when government services themselves do not accept electronic payment today. “How do you expect others to accept it?” he asked. At the same time, he questioned whether the current infrastructure of the national switch can handle all these operations, as they pass through the banking system—are they capable today? He stressed the need to assess the technical infrastructure across the national switch, payment processors, and commercial banks themselves.
Al-Bouri continued that the databases currently in place—can they process and run operations at this scale? He believes this is the core problem. A lack of alignment between vision and practical steps by banks, the national switch, and electronic payment companies yields undesirable results. What will happen is disruption and ongoing settlement issues, leading to stoppages. This, in turn, will make citizens say, “I want cash—I went to pay and the transaction failed,” or “the amount was deducted but the merchant didn’t receive it,” which would undermine the Central Bank’s vision of promoting electronic payments.
He explained that when taking such steps, it is essential to consult all stakeholders, understand their technical conditions and operating environments, and conduct proper sizing of their systems so they can upgrade capacity before launching such a vision. The entire ecosystem must be ready. It cannot be achieved through theory or guidance from the Central Bank alone; otherwise, systems will be unable to handle the massive volume of transactions. The whole ecosystem must be prepared to reach the Central Bank’s desired goals.
Al-Bouri added that K2 oversight is not oversight over the Central Bank itself; rather, it is stricter oversight over foreign currency sales operations. He noted that there has been significant corruption in these operations, many of which involve money smuggling and money laundering. He believes K2 will support the Central Bank in limiting suspicious or illegal operations. He added that this constitutes support for the Central Bank, which itself faces pressure from certain groups that sell letters of credit and trade in personal-purpose cards. He noted that traders are the primary buyers of these personal cards, while citizens receive only small amounts of dinars in return. Any oversight of this kind, he said, should be supported, as it will genuinely limit entrenched corruption that has existed for 15 years or more, becoming deeply rooted and powerful among certain beneficiary groups. He described K2 as a very positive step.
Regarding the sixth cycle of the banking sector development zone and the banking forum, Al-Bouri explained that it brings together many decision-makers and specialists in banking and finance. The forum will include sessions over two days addressing current challenges such as deficit financing, liquidity shortages, political division, and the consequences of its persistence—aimed at finding solutions that citizens can feel through improved living standards.
He added that, as in previous years, the forum will issue recommendations derived from the sessions and contributions of decision-makers and technical experts. He expressed hope that these recommendations will see the light of day. Unfortunately, he noted, many recommendations from the previous five forums—most notably the call to unify the monetary institution—were delayed; however, today, thanks be to God, that recommendation has been realized, with a unified Board of Directors for the Central Bank of Libya.
Al-Bouri pointed out that several other necessary measures must be adopted, such as rationalizing public spending, having a single budget, avoiding deficit financing, and refraining from selling dollars below the official rate. Doing so creates price differentials that fuel speculation, which naturally generates profits for a small group while the majority suffer.
He continued: God willing, today’s and tomorrow’s sessions will adopt many of these solutions. He urged decision-makers—whether at the Central Bank, the legislative authority, or the government—to adopt these solutions so they can be implemented and activated to improve the country’s financial and economic conditions.
Al-Bouri concluded his statement by saying that if fundamental solutions are not taken today—despite the fact that some may be difficult and painful—they remain the only way to stop the current bleeding. Continuing on the current path, he warned, would be catastrophic for everyone in the near future.
Member of the Central Bank’s Board of Directors, Fakher Bouferna, told our source that the Central Bank has failed in some areas but succeeded in others, stressing that one year is not sufficient to judge the performance of the Central Bank’s Board of Directors. He explained that the Board’s decision to withdraw currency was a courageous one that helped curb wage growth and the flow of subsidies, and contributed to increasing oil production alongside the unification of the development budget.
Bouferna added that, within the framework of the Central Bank’s efforts to promote a culture of banking investment, and with regard to the rules governing investment funds—previously known under the Investment Fund regulations—it is expected that, during the next meeting or the one following it, the rules for investment funds will be issued. These rules will contribute to organizing the work of such funds in a way that allows banks to invest their funds and also enables depositors to invest their money.
Bouferna concluded his statement by saying that these regulations were prepared in partnership between the Central Bank and the Capital Market Authority, due to the existence of legal overlap regarding investment funds. Law No. 46 of 2012 granted the Central Bank of Libya the authority to approve investment funds, while Law No. 11 of 2010, which governs the capital market, assigned the supervision and oversight of these funds to the Capital Market Authority. This resulted in a legal duality between the Central Bank and the Authority, which was addressed through a joint committee between the two entities and stipulated in the new rules. Accordingly, the issue has been resolved.
The member of the Board of Directors of the Central Bank, Ridha Gargab, stated to our source that the Central Bank enjoys a significant degree of independence, though the environment remains pressuring on its Board of Directors. He explained that the Central Bank issues new decisions on a daily basis “to introduce reforms,” noting that monetary policy is unstable due to the lack of control over public spending. There are budgets that do not align with the state’s structure, and the existence of two governments is a reality, all of which are factors that affect the Central Bank.
Gargab added that what has fueled spending is the absence of a fair law. Although a law exists and is reapplied every year, it is implemented by one side only and does not take into account the economic situation or the structure of the state. There are entities included in the law that do not exist on the ground, while, conversely, there are entities that exist in reality but are not included in the law. He noted that the Central Bank has placed itself in a difficult position, as the law was designed for a single government, whereas the reality points to the existence of two governments, with which the Central Bank has to deal.
Gargab further stated that he addressed, at the Banking Forum, the independence of the Central Bank of Libya and governance in the banking sector. The sessions witnessed wide-ranging discussions, with most questions revolving around the Central Bank’s ability to perform its duties amid the political challenges and ongoing conflicts in the country. Undoubtedly, the current circumstances greatly affect the independence of the Central Bank; nevertheless, God willing, they are moving forward toward establishing a leading institution in Libya.
He continued: “As for electronic payments, we are satisfied with the level of progress achieved, as there is a good plan that shows clear improvement compared to last year. At this time last year, electronic payment was significantly lagging, and reliance on cash was high in the Libyan economy. Today, thanks be to God, reports published by the Central Bank show that the volume of electronic transactions has become very large, reaching billions. Yes, there is a liquidity crisis related to cash withdrawals due to circumstances well known to everyone, but, God willing, this crisis will gradually ease by the end of the year.”
Gargab concluded his statement by saying: “Regarding exchange offices, work is ongoing on the applications submitted by the owners of these offices and companies. Approvals were issued previously, and other approvals are currently in the process of being issued. The Bank is currently assessing the capacity and capabilities of these entities to manage this file, and we expect, God willing, that these offices will begin operating during the first quarter of next year.”
Our source has obtained the Central Bank of Libya’s correspondence instructing banks to extend working hours until 5:30 PM, starting from Sunday, December 14 to Thursday, December 18, in order to give citizens more time for cash withdrawals.
The directives also include increasing the number of cash distribution counters and fully refilling all ATMs with liquidity.
During the Banking Sector Forum, the Governor of the Central Bank of Libya launched three strategic initiatives, including the formation of a national advisory team for financial and economic reform made up of Libyan banking experts. This team will operate under the Governor’s direct supervision to provide technical advice and shape future financial and economic policies, ensuring that decisions are grounded in scientific principles and national expertise.
The Governor stated:
“As part of our efforts to address liquidity challenges and enhance financial inclusion, we announce our full support for the ‘Zero Cash 100’ initiative, which aims to accelerate digital transformation by guiding 100 major companies toward ending cash transactions and fully transitioning to electronic payments, while providing the necessary incentives to ensure the success of this important step.”
He added that the initiative aligns with the Central Bank of Libya’s National Financial Inclusion Strategy 2025–2029, which aims to provide secure, accessible, and user-friendly financial services for all through digitalization and the development of an integrated digital financial infrastructure—supporting the growth of a modern digital economy capable of promoting stability and development in Libya.
The Governor continued:
“We have approved the launch of the Banking Performance Excellence Award for individuals and institutions, under the technical supervision of the Research and Statistics Department and in cooperation with this forum, in recognition of professional excellence and innovation within the banking sector.”
He concluded by announcing:
“It has been decided that the next edition of this award will be named after the esteemed banker Abdullah Al-Saudi, in honor of his distinguished career and in recognition of his significant contributions to the development of the Libyan and Arab banking sectors.”
The Central Bank of Libya revealed exclusively to our source that December has recorded the highest foreign currency sales compared to all previous months. This comes as banks prepare to secure goods for Ramadan and for the first quarter of 2026, through letters of credit, transfers, and personal-use allocations.
The Bank added that around $2 billion has already been sold as of today, December 7, equivalent to 13 billion dinars in just seven days. An additional $1.5 billion has been approved and is ready for sale—equivalent to 10 billion dinars—and the Central Bank continues issuing new approvals at a rapid pace.
It further stated that the current turmoil in the currency market is the result of speculation by a small group that refuses to comply with anti–money laundering regulations and the restrictions on fake letters of credit. Their aim, the Bank says, is to drive up the exchange rate to pressure the Central Bank into lifting the strict measures that have sidelined currency speculators and corruption networks.
The economic expert Sulaiman Al-Shahoumi wrote:
“Every time the monthly statement of the Central Bank of Libya is released, it becomes an occasion for logical and rational discussion among experts. It is also an opportunity and rich media material to explore and analyze our reality and its causes, as well as the appropriate opinions and solutions in the face of a situation that is easy to explain, yet extremely difficult to mitigate its consequences or heal its wounds.”
Despite being the only document that informs us monthly about government spending, revenues, and the use of foreign currency, the Central Bank’s monthly statement increases ambiguity and confusion. It takes us into side paths, far from its core role—one that seems to be facing greater challenges with each passing day.
In reality, given its function, law, and primary role in the economy, the Central Bank is responsible for presenting the economic situation with its various dimensions—traditionally provided through its quarterly bulletin—and for measuring economic stability. It must also show how it uses monetary policy tools to maintain stability based on key indicators, including banking indicators such as money flows, money supply, the activity of the money market between banks and the Central Bank, interest rates and their movements based on financial and economic conditions. Instead, the Central Bank has shifted into a publisher of spending and revenue data, presenting this information however it chooses.
The latest monthly statement indicates a decline in oil-sales revenues transferred during recent months. This leaves the reader in significant confusion and concern.
Is this because some revenues are being withheld and not transferred to the Central Bank? Who would benefit from doing so? Why is this ambiguity not clarified, especially through reconciliation with the National Oil Corporation—which has stopped publishing data on export volumes and values—deepening this uncertainty? Or is the decline simply due to a global drop in oil prices, which seems more likely? In either case, proper justification must be provided.
There is no doubt that presenting reports of national economic relevance requires coordination and harmonization among economic institutions in both content and timing—whether the National Oil Corporation, the Ministry of Finance, the Audit Bureau, or the Central Bank.
As for the issue of declining and utilizing Central Bank reserves to cover the gap between revenues and foreign-currency demand—and the fact that reserve values have increased overall due to rising gold prices—this does not realistically align with basic principles of caution when dealing with global price fluctuations. It also reveals a change in how the Central Bank calculates its reserves, which for decades did not revalue gold holdings or investments based on market prices. This raises a question: Why has the Central Bank not disclosed the reasons behind this cautious change in valuation methodology? And is it seeking to inflate reserve assets to send a certain message about the sustainability of reserves now that global gold prices have risen?
Meanwhile, the report avoids addressing the extremely difficult reality of cash shortages and the soaring demand for foreign currency—issues the Central Bank has found itself trapped in due to the disruption of its ability to manage monetary policy smoothly and professionally.
The monthly report notes a surplus between government revenues and expenditures. However, this also sends a very unclear signal because it only accounts for the spending of one of the two governments. The Central Bank did not provide—even minimally—a monthly breakdown of how much it finances the other government, leaving us without a clear understanding. From time to time, it only informs us of the increasing public debt that the Central Bank alone continues to finance.
There is no dispute that the Central Bank of Libya operates under harsh and chaotic conditions, but that does not exempt it from presenting all information transparently and in a timely manner.
The Central Bank of Libya has revealed its correspondence sent to general managers of several oil companies — including Libya Oil Joint Venture, Golden Palm for Oil Services, International Trust for Oil Services, and Alrahila Company — instructing all stations to use electronic payment methods instead of cash transactions.
The Bank emphasized the importance of this measure, noting the benefits it brings to the national economy and to citizens through the use of electronic payment systems.
The Central Bank also issued multiple circulars on developing electronic payment channels, including one to Tadawul Company regarding the launch of instant payment via point-of-sale devices using QR codes; as well as to the General Syndicate of Bakeries and Mills, and the Municipal Guard, requiring bakeries to comply and conducting inspection campaigns to ensure that shops adhere to instant payment methods.In addition, the Bank instructed commercial banks to launch instant payment services using QR technology.
The Central Bank further requested its affiliated departments to submit weekly statistics on lypay and onpay services.
The Central Bank of Libya announced on Thursday that total revenues from January to November of the current year reached 115.3 billion dinars, compared to expenditures of 107.5 billion, resulting in a surplus of 7.9 billion dinars. Meanwhile, the foreign-currency deficit amounted to 7.8 billion dollars, which was covered through returns from the Central Bank’s investments, deposits, bond portfolios, and gold. Foreign assets also recorded gains of 2.2 billion dollars, bringing total assets to 99.4 billion dollars.
The statement clarified that revenues from the fee imposed on foreign-currency sales amounted to 21.4 billion dinars. The Bank distributed liquidity worth 94 billion dinars from the beginning of 2025 until the end of November. Salaries reached 61.2 billion dinars, operating expenses 5.8 billion, development spending 7.2 billion, and subsidies 33.3 billion dinars.
The Central Bank added that total uses of foreign-currency sales reached 28.5 billion dollars, including letters of credit worth 14.1 billion, personal transfers of 7.5 billion, wire transfers of 696 million dollars, and small-trader card payments of 120 million. It revealed that 317.6 million dollars were spent on salaries of employees abroad, 120.8 million on allowances for students studying overseas, 93.3 million on overseas medical treatment, 584.6 million for the National Oil Corporation, 2.6 billion for fuel, 253.2 million for medical supplies, 683.3 million for electricity, and more than one billion dollars in transfers for other entities.
Regarding expenditures for the country’s four main political bodies—the Government of National Unity, the Presidential Council, the House of Representatives, and the High Council of State—the statement indicated that total spending reached 5.7 billion dinars. Spending by the Government of National Unity’s Cabinet alone amounted to 218.9 million dinars, the House of Representatives spent 74.7 million, the Presidential Council 48.6 million, and the High Council of State 44.4 million dinars.
The Central Bank’s statement also disclosed expenditures for ministries under the Government of National Unity:
The Central Bank of Libya confirmed exclusively to our source that cash will be available in all branches of commercial banks starting from December 14.
It added that today it completed the transfer of November salaries to their recipients through the instant salary system, and that salaries for the remaining sectors will be transferred through the portfolios mechanism during the coming week.
According to the Central Bank, cash will be available starting the following Sunday due to concerns that it may leak through channels not designated for customers who receive their salaries monthly. The Libyan banking sector encourages all citizens to use electronic payment tools and methods, as they are considered the best and most sustainable solution, supporting digital transformation towards a fully integrated digital economy.
