Tag: central bank

Our source obtained a decision issued by the Governor of the Central Bank of Libya, in his capacity as Chairman of the Anti-Money Laundering and Counter-Terrorism Financing Committee, addressed to the Customs Authority. The decision sets the amounts that must be declared when entering or leaving Libya, accompanied by a disclosure form and instructions to circulate it across all entry points, install guidance signage, and allocate areas for completing the forms.

As part of efforts to regulate cash movement, the disclosure threshold has been raised from $10,000 to $30,000, with plans to gradually increase it further to encourage the inflow of foreign currency into the country and enhance transparency.

According to the decision:

• The maximum amount that may be taken out of Libya in cash without declaration is $5,000 or its equivalent in other currencies.
• The maximum amount that may be brought into Libya in cash without declaration is $30,000 or its equivalent in other currencies.
• Foreign currency may also be carried or transferred into Libya in the form of bank drafts, letters of credit, traveler’s checks, transfers, shares, bonds, or other financial instruments denominated in foreign currency.
• Any traveler is permitted to carry up to 1,000 Libyan dinars in cash when entering or leaving Libya, intended to cover expenses before or after travel. This amount must remain in cash and cannot be converted into foreign currency.

The decision further states that buying or selling foreign currency or foreign-denominated securities is only permitted through licensed banks and exchange companies.

It also allows non-residents, upon leaving Libya, to take out any remaining foreign currency they had previously brought into the country.

Our source obtained a copy of a letter from the Central Bank addressed to commercial banks, instructing them to extend working hours until 5:00 PM in preparation for the distribution of cash US dollars, starting from next Sunday through Thursday.

The letter also emphasized the need to inform bank customers through all communication channels, including official bank websites and social media platforms, about the procedures being implemented in this regard.

The Central Bank of Libya revealed exclusively to our source that it has concluded a meeting with several commercial banks, during which it was agreed to begin receiving part of the $1 billion allocated for sale, with an initial tranche of $500 million to be received tomorrow, Monday.

The amount will be distributed to branches designated for the sale process, with shipments also to be transferred to other regions.

The Central Bank of Libya confirmed exclusively to our source that it is working to implement a flexible plan to inject $1 billion for letters of credit to be sold to banks, along with $1 billion in cash to ease demand and achieve market balance, noting clear signs of improving oil revenues.

The Bank also stressed that there will be no bottlenecks on the demand side regarding personal allocations, medical and education transfers, and letters of credit.

The Central Bank of Libya revealed exclusively to our source that bookings for U.S. dollar cash have begun through the personal allocation system, with plans to later add a cash booking option for education and medical treatment as well.

It added that citizens who had previously made bookings through the personal allocation system—before the launch of the cash dollar sales mechanism—and who wish to receive foreign currency in cash must cancel their previous booking and submit a new request through the cash sales system.

The Central Bank of Libya stated exclusively to our source that it has reached very advanced stages in organizing the foreign exchange market, with the goal of managing it through the banking system and exchange companies.

It added that banks and exchange companies have been granted broad powers and flexibility for anyone wishing to operate within the formal system, including flexible domestic and international transfers for foreign currency use. This aims to enhance confidence in the banking sector, enable cash sales of foreign currencies, and allow individuals to move away from the black market by depositing funds in banks, transferring them, or receiving transfers from abroad.

The Central Bank also noted that direct engagement with the Chinese market will serve as an encouraging factor for operating through the banking system, emphasizing that all participants in the Libyan market have the opportunity to work formally through banks and exchange companies.

The Central Bank of Libya announced to our source that the cash reservation system for personal purposes will be launched tomorrow, Wednesday.

It also confirmed the start of collecting reservations and transferring the allocated amounts to banks, with plans to soon expand the system to include cash reservations for medical treatment and education.

Our source has obtained a circular issued by the Central Bank to commercial banks outlining mechanisms to regulate the sale of foreign currency in cash to citizens through a dedicated electronic platform.

The circular referred to a meeting held at the Banking and Currency Control Department with general managers of banks on Monday, April 13, 2026. The Central Bank requested that banks provide this department with a list of branches through which citizens will be able to withdraw their personal foreign currency allocations in cash, no later than Thursday, April 23, 2026, taking into account geographic distribution to facilitate the withdrawal process for citizens.

It also emphasized the obligation to document all transactions related to foreign currency through the designated systems, starting from the receipt of currency from the Central Bank of Libya, to its transfer from the bank to branches, and finally to the customer. Banks must retain copies of all documentation so that they are available for review by the Central Bank of Libya.

Our source has obtained a copy of a circular issued by the Central Bank outlining the mechanism and controls for selling personal foreign currency allocations in cash to citizens through the personal allocation system. The circular was addressed to general managers of banks and chairpersons of licensed exchange companies. It allows for a profit margin of 1%, distributed as 0.5% for exchange companies and offices and 0.5% for banks, in accordance with the following controls:

1. Citizens are permitted to obtain their personal allocations in cash and receive them through commercial banks.
2. The Central Bank of Libya will supply banks with their foreign currency cash needs based on the amounts purchased by citizens through the personal allocation system via exchange companies and offices.
3. Banks are responsible for securing the receipt of foreign currency from the Central Bank, according to serial numbers, and transferring it to their main vaults and branches.

According to additional controls:
4. Banks must enable citizens who hold current accounts with them to withdraw their allocations in foreign currency cash through designated branch networks agreed upon with the Central Bank, ensuring organized distribution based on lists provided by the Central Bank.
5. Banks bear responsibility for transporting foreign currency from the Central Bank to their headquarters and branches, in line with the Central Bank’s procedures and controls, while applying security and safety standards.
6. Exchange companies and offices must follow procedures outlined in Circular No. (2) of 2026 and comply with Circular No. (4) of 2026 regarding anti-money laundering and counter-terrorism financing controls.
7. Banks are allowed to add a commission (profit margin) to the official exchange rate announced by the Central Bank within a limit of 1%, as per the Board’s decision. This is divided equally between banks (0.5%) and the exchange companies/offices through which the booking process was conducted, with strict prohibition on imposing any additional fees on customers.

Further controls include:
8. Banks must document each cash withdrawal transaction using the serial numbers of the currency delivered to the customer, retain transaction data, and record it in the designated system.
9. Bank clients are entitled to verify that the serial numbers of the received currency match those stated on the receipt issued by the bank.
10. Banks must verify customer identities in person before executing any transaction and apply due diligence measures proportionate to the nature, size, and associated risks, in line with Central Bank instructions.
11. Banks must document each withdrawal process by:

• Entering required data into the foreign currency sales platform, including serial numbers of delivered banknotes, customer details, transaction details, and timing.
• Retaining a signed cash receipt form from the customer, along with a copy of their identification and the delivery receipt.
• Ensuring that Know Your Customer (KYC) data is up to date both physically and within the bank’s system.
• Documenting due diligence procedures and results in compliance with Central Bank regulations on compliance, anti-money laundering, and counter-terrorism financing.

The Central Bank called for strict adherence to these instructions and their implementation, noting that it will conduct monitoring and inspection processes across all banks and their branches to ensure proper application, as well as the accuracy and integrity of submitted data and reports.

The Central Bank of Libya reported, in an exclusive statement to our source, the arrival of a new shipment of foreign currency in cash (“USD cash”) worth approximately $300 million, arriving at the Central Bank through Mitiga Airport.

This shipment comes as part of efforts to meet the market’s demand for foreign currency and to enhance the availability of hard currency liquidity within the country.

The Governor of the Central Bank of Libya, Naji Issa, stated that the bank will supply the final shipment of US dollars during this week, noting that the available quantities will be sufficient to cover market needs for the next three months. He added that there is an agreement with international banks to supply consecutive monthly shipments based on the Central Bank’s demand.

Issa expressed confidence that the Central Bank’s plan, in cooperation with commercial banks and exchange companies, will help reduce the exchange rate gap to below 7 Libyan dinars. He indicated that a circular will be issued outlining the mechanism for operations and the distribution of foreign currency to banks, emphasizing that the procedures will be smooth and facilitated.

He also pointed to commitments from international banks and institutions to support the Central Bank’s efforts, particularly in managing reserves and supporting exchange rate stability. At the same time, he affirmed the bank’s determination to take measures that strengthen the Libyan dinar, in coordination with relevant authorities, and to benefit from improved oil prices and revenues, while obligating all parties to implement a unified public spending framework.

The governor explained that there is readiness to inject more than $2 billion in cash according to specific needs that will be announced later, stressing that maintaining foreign currency reserves remains a fundamental objective that will not be compromised.

He further confirmed coordination with security authorities to combat any practices that harm the strength of the Libyan dinar, working to deter the black market and shift its activity into the formal framework through banks and exchange companies.

He added that measures will be announced to facilitate the circulation of foreign currency between banks and customer accounts, including allowing the sale of US dollars in cash for purposes such as medical treatment and education.

Regarding liquidity, Issa confirmed the bank’s readiness to provide it according to citizens’ needs, noting that contracts have been signed to print large quantities of Libyan currency, with the aim of ending speculation between check-based and cash exchange rates.

He also highlighted the continued expansion of electronic payment services, which now cover more than 95% of activities and regions, in addition to coordination with the Ministry of Finance to impose strict measures requiring all entities to join the “Ratibak Lahthi” (Instant Salary) system without exception, aiming to cover all public sector employees.

In a related context, the governor stated that measures will be taken in cooperation with the Ministry of Economy to regulate prices, determine market needs for goods, and tighten oversight to prevent smuggling through border points. Importers benefiting from letters of credit will be required to set prices for goods, with penalties imposed on violators.

The Central Bank of Libya told our source that it now has the capacity to inject sufficient US dollar liquidity to meet citizens’ needs and balance the market.

The Central Bank added that it will begin by injecting $1 billion as an initial phase, and will continue with regular monthly injections.

The Central Bank of Libya confirmed to our source that, during a meeting with commercial banks, an agreement was reached to begin selling US dollars in cash.

This comes alongside the easing of procedures related to the use and transfer of foreign currency, coinciding with the arrival of additional large shipments of cash dollars this week.