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.
Our source obtained a communication from the Central Bank of Libya addressed to commercial banks, instructing them to contact the Issuance Department and its branches outside the city of Tripoli. The coordination aims to secure the banks’ requirements for cash liquidity in order to supply their various branches across the country.
This measure is being implemented as part of the Central Bank’s plan to distribute liquidity to all banks and their branches in cities across Libya.
The Central Bank of Libya revealed to our source that an initial batch of $1 billion in cash will be distributed to commercial banks. The booking and purchasing mechanism will follow the same system currently used by exchange companies, including testing the bank and branch listed in the system. Customers will also have the freedom to choose the type of transaction—whether cash, instant transfers, or transfers between bank accounts.
The Central Bank added that customers will receive the US dollars in cash from designated bank branches in the full amount of $2,000. Customers will pay any difference in Libyan dinars in order to receive the full amount, based on the official exchange rate in effect, with additional agreed-upon fees.
The Bank emphasized that the selling price must not exceed 6.43 Libyan dinars per US dollar.
The Central Bank of Libya revealed exclusively to our source that it will hold an expanded meeting this week with directors of commercial banks to discuss several key issues. Most notably, the meeting will address the approval of a mechanism for selling US dollars in cash through a dedicated system designed for this purpose. It will also determine the bank branches that will begin the sales process across different regions of Libya, and coordinate the logistics of transporting US dollar currency to these branches in preparation for launch.
The Central Bank added that the agenda will also include the implementation of a Board decision to introduce a restricted deposit instrument, which allows beneficiaries to purchase foreign currency at a rate ranging between 50% and 70%, with full freedom to use it. Holders of unrestricted investment certificates will also be granted access to this feature once their one-year maturity period is completed.
Additionally, the meeting will cover:
The Central Bank noted that significant facilitation measures will be introduced in this area to improve the efficiency and accessibility of foreign currency transactions.
Exclusive sources told our source that the value of the budget, excluding fuel, stands at 136 billion dinars, covering Chapters One, Two, Three, and Four.
The sources added that the total agreed budget amounts to approximately 180 billion dinars, including 44 billion dinars allocated for fuel, 73 billion for salaries, and 40 billion for development (20 billion for eastern Libya and 20 billion for western Libya). The budget also includes allocations for commodity subsidies (Chapter Four), as well as the continuation of child and spouse allowances and other items (within Chapters Two and Four). All chapters cover both governments.
The budget also includes debts of the National Oil Corporation amounting to $2 billion. Overall, the budget is considered well-balanced, with the ability to cover it through foreign currency resources.
The sources confirmed that Chapter Three represents foreign currency requirements for all parties through the Central Bank, with no room for checks entering the market. The budget will be reviewed periodically based on available revenues and prevailing conditions.
The Central Bank of Libya revealed exclusively to our source that it has achieved significant progress in its action plan and is moving toward implementing more impactful steps in the market, aimed at easing access to foreign currency for citizens.
It added: “We do not send signals for media purposes—our steps are practical and steady. We have a target for the exchange rate following the unification of public spending, and there are other factors that require reform within our plan. This week will be full of important steps.”
Written by Presidential Council Member “Abdullah Al-Lafi”.
We welcome the achievement realized today with the signing of the unified public spending agreement, following a long marathon of serious negotiations. It is a qualitative step that enhances transparency, regulates spending paths, and reduces financial disorder—contributing to the stability of financial markets and prices, and restoring balance to the national economy.
This is an achievement credited to all Libyans and a clear demonstration that national will is capable of overcoming complexities when awareness and responsibility are present. We call on all institutions to make this agreement a model and a path toward unifying positions. Libya is one, its destiny is shared, and its people are capable of resolving their differences in the spirit of statehood rather than division.
We also emphasize that this step places increased responsibility on executive authorities to uphold the highest standards of transparency and governance of public finances, through clear procedures, regular disclosure, and strengthened tools of oversight and accountability—ensuring the proper allocation of resources and protecting them from waste or misuse. In this context, we also commend the role of international partners who contributed to facilitating this process and supporting the achievement of this agreement.
Unifying public spending is not merely a financial measure; it is the foundation for a new phase of reconstruction, development, and nation-building. It reinforces a stronger financial and legal position for the Libyan state, opening broader prospects for stability and growth, and restoring confidence in our national institutions.
Written by economic expert “Saber Al-Wahsh”.
This agreement represents a positive step that can be built upon, provided there is real commitment to its terms by all concerned parties. Controlling public spending in the Libyan economy has long been a key demand over the past years, and this development reflects the beginning of a response to those calls.
This measure is expected to have a positive impact on several economic indicators, particularly in terms of stabilizing commodity prices and easing pressure on the exchange rate in the parallel market, which may help reduce the sharp fluctuations witnessed in the economy in recent periods.
Moreover, adherence to the implementation of this agreement could foster a state of relative calm in economic activity and pave the way for a phase of gradual stability, especially regarding the exchange rate, which is likely to move within more balanced and acceptable ranges.
Overall, this step is a positive signal; however, its real impact will remain dependent on the seriousness of implementation and the continuity of adopting disciplined fiscal policies.
Written by the Head of the Accounting Department at the Libyan Academy, “Abubakr Abu Al-Qasim”.
Recent news has reported the signing of an agreement to unify development spending among the parties in the Libyan landscape, a step that, in principle, represents a long-awaited positive development—especially in light of financial division and the structural imbalances it has caused in the management of public resources.
In this context, one cannot overlook the pivotal role played by the Central Bank of Libya and its Board of Directors, supported by effective international pressure, in sponsoring this agreement after negotiation rounds that lasted more than a year. This reflects a growing awareness of the importance of unifying financial decision-making as a key entry point for addressing economic distortions and restoring a degree of stability.
From a theoretical perspective, full commitment to the terms of this agreement could achieve several positive outcomes, most notably curbing uncontrolled public spending, improving the efficiency of resource allocation, which would gradually be reflected in exchange rate stability, strengthening the Libyan dinar, improving citizens’ purchasing power, and supporting the path toward financial stability.
However, this optimism—despite being well-founded—should remain accompanied by a high degree of caution. Past experiences show that the real challenge lies not in signing agreements, but in ensuring their actual implementation and sustainability. Therefore, the success of this agreement requires it to be complemented by a set of supporting measures, most importantly:
First: Strengthening the governance of public revenues, particularly oil revenues, to ensure transparency in collection and allocation, fairness in distribution, and subjecting them to strict oversight mechanisms.
Second: Subjecting development spending to institutional oversight by activating the role of supervisory bodies within the legal frameworks, in order to reduce waste and enhance spending efficiency.
Third: Adhering to the principle of fiscal sustainability by aligning spending levels with actual revenues and avoiding deficit financing methods that could exacerbate monetary imbalances.
Fourth: Achieving coherence among economic policies, particularly between fiscal, monetary, and broader economic policies, to ensure a consistent direction for the national economy and enhance the effectiveness of reform tools.
Commitment to these pillars would strengthen the chances of success for the unified spending agreement and translate its positive effects—even in the short term—into tangible indicators on the path to economic recovery.
In conclusion, hope remains that this step will mark the beginning of a serious path toward comprehensive economic reform that achieves financial stability and sustainable development for Libya, and restores confidence in its economic institutions. We pray for our country’s security, stability, and prosperity.
The Governor of the Central Bank of Libya, Naji Issa, stated—on the sidelines of the official announcement today, Saturday—that the bank has succeeded in unifying the public budget and controlling public spending after years of division, officially announcing the unification of public spending within a disciplined framework between the east and west.
He added that adopting a unified spending framework would ease pressure on the exchange rate and enhance the effectiveness of monetary policy, noting that this step came after significant efforts that culminated in what he described as a historic achievement. He confirmed that this step will be followed by other serious measures to strengthen financial stability and reinforce the value of the Libyan dinar.
He explained that the bank hopes all parties will adhere to this agreement to ensure the continuation of economic reform, noting that the next objective is to correct the course of trade policy to align with monetary and fiscal policies.
Issa confirmed that following the unification of public spending, the exchange rate in the parallel market is expected to decline to around 6.90 dinars per dollar, with the gap between cash and checks in various transactions nearing elimination.
He pointed out that the bank possesses a package of economic reforms and will not hesitate to implement them, explaining that public spending has been unified, the supply of dollars improved, and electronic payments developed. This is in addition to withdrawing counterfeit currency, contracting the printing of secure banknotes to eliminate liquidity shortages, and launching new initiatives within an approved plan.
He added that exchange activity has been launched in Libya for the first time, alongside efforts to regulate and control the foreign exchange market, as well as developing the foreign currency sales system and contracting with an international company to detect fake letters of credit, and reducing the misuse of personal-purpose cards. He stressed that there will be no need to travel to neighboring countries to obtain dollars.
He explained that the bank has worked quietly since assuming its duties, prioritizing citizens’ interests despite the complexities of previous challenges, noting progress in resolving bottlenecks and strengthening foreign currency reserves to exceed 100 billion dinars within one year, while continuing to review the value of the dinar without depleting reserves.
He also confirmed the success of the bank in automating salary payments through the “Ratibak Lahthi” system, which has helped recover embezzled funds, uncover corruption suspicions, and facilitate salary disbursement for citizens.
He stated that the public spending unification agreement that was signed defines expenditure and revenue levels and regulates spending across all categories within a development program worth 40 billion dinars, with the participation of all parties, under the supervision of the central bank and the approval of both the House of Representatives and the High Council of State.
He added that the agreement ensures fiscal sustainability, avoids public debt and off-budget spending, and guarantees fair distribution of resources and access to foreign currency outside the parallel market, thereby reducing pressure on the exchange rate.
He noted that the agreement enhances the bank’s ability to strengthen the dinar and reduce speculation, enabling more flexible exchange rate management. He emphasized that the success of unifying public spending represents a first step toward real economic stability and addressing imbalances accumulated over years.
He concluded by stating that the concerns that prevailed recently due to the absence of a unified budget have begun to fade, with optimism returning following this national milestone.
Written by Professor of Economics “Ali Al-Sharif”:
In light of what some media outlets have reported regarding the movements of the Central Bank of Libya, a set of positive indicators emerges that may represent an important shift in managing the economic landscape.
First, an agreement has been reached on a final formula for unified and disciplined public spending, which is a fundamental step toward enhancing the sustainability of public finances.
Second, achieving around 80% of the financial inclusion plan represents notable progress, enabling greater reliance on electronic payment methods and reducing the need for cash liquidity. This could contribute to addressing the chronic liquidity crisis that has accompanied the economy for more than a decade.
Third, the understanding reached with the National Oil Corporation regarding a budget aimed at increasing production by approximately 200,000 barrels per day is expected to strengthen public revenues and provide supportive room for any potential policies aimed at strengthening the Libyan dinar and maintaining its stability, especially if oil prices decline after tensions in the Strait of Hormuz subside.
In addition, the measures include unconventional monetary tools such as restricted deposits and other mechanisms aimed at absorbing part of the money supply, contributing to curbing inflationary pressures and reducing demand for dollars outside the banking system.
The hope is that these steps will lead to a degree of economic stability, even in the short term, and serve as a starting point for deeper reforms in the medium and long term.
On the sidelines of concluding Article IV consultations with the International Monetary Fund today, Wednesday, the Governor of the Central Bank of Libya, Naji Issa, stated that the bank has a plan to support the value of the Libyan dinar and to inject foreign currency on a regular basis, alongside expanding cash dollar sales.
Naji Issa explained to the IMF expert mission that new mechanisms have been put in place to deal with foreign currency, and to regulate transfers between accounts of individuals, traders, and companies with more flexible procedures.
He added that a unified framework for public spending will be adopted to ease pressure on the exchange rate, noting that there are excellent understandings in this regard, in addition to a plan to distribute cash dollars and activate exchange companies more effectively, with the launch of cash foreign currency sales approaching.
Naji Issa also announced the launch of subscription to restricted deposits for one year, granting clients the advantage of purchasing foreign currency equivalent to 70% of the deposit value, with full freedom to use these funds through local and international transfers.
He further advised small traders not to deal with the black market to avoid potential losses, stressing that the bank’s goal is to gradually reach a balanced exchange rate and reduce the gap between the official and parallel rates to 5%.
Naji Issa pointed out that reaching an exchange rate of 6.90 dinars per dollar is achievable after unifying public spending, with the margin difference between cash purchases and checks in various transactions nearing elimination.
He confirmed that the liquidity plan has been successful, with a strategy in place to enhance liquidity levels in the economy and print additional currency issues, noting the bank’s ability to supply dollars at any required level, alongside a plan to inject $1.5 billion and continue regular monthly injections until the end of the year.
He emphasized that regulating the foreign exchange market is a core objective of the central bank, affirming that the necessary tools are available to achieve this. He also highlighted progress in financial inclusion, with electronic transactions exceeding 80% of total market transactions, targeting 95%, and expecting that pricing via electronic payments will be lower than cash payments.
Naji Issa added that the bank continuously reviews improvements to the value of the Libyan dinar with its board of directors based on developments, noting the success of the electronic salary system “Ratibak Lahthi” in enhancing transparency and increasing the number of beneficiaries, with a target of reaching 2.4 million employees in cooperation with the Ministry of Finance.
He concluded by اشاره to studying proposals to improve living standards, through supporting certain goods or providing direct cash support, balancing prices to avoid increases, and cooperating with the National Oil Corporation to support it with loans and necessary budgets to increase production and boost revenues.
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The Central Bank of Libya revealed exclusively to our source that it has decided to inject $1.5 billion as an initial tranche for personal purposes, with the proposal also covering medical expenses. As part of efforts to increase the supply of U.S. dollars, the bank expects to raise the personal foreign currency allowance to $4,000, while also increasing allocations for letters of credit to compensate for supply shortages and meet citizens’ needs for goods and services.
This comes after the receipt of actual revenues for April, which are expected to reach $3 billion. The bank also outlined a short-term plan aimed at gradually strengthening the Libyan dinar to 6.90 LYD per USD.
The Central Bank of Libya revealed exclusively to our source that it has decided to inject $1.5 billion as an initial tranche for personal purposes, with the proposal also covering medical expenses. As part of efforts to increase dollar supply, it is expected that the personal allowance will be raised to $4,000, along with increased allocations for letters of credit to compensate for supply shortages and meet citizens’ needs for goods and services.
This comes after receiving actual revenues for April, which are expected to reach $3 billion. The bank also outlined a short-term action plan aimed at gradually strengthening the Libyan dinar to 6.90 LYD per USD.
