Tag: central bank

The Central Bank of Libya revealed to our source that it has concluded a meeting with major banks to discuss challenges facing foreign currency sales for all purposes. The meeting resulted in agreements to accelerate the opening of letters of credit and the circulation of related documents, as well as speeding up card loading processes and resolving bottlenecks in large reservations, particularly at Al-Aman Bank, Commercial Bank, and others.

The Central Bank added that it has agreed to inject $300 million today for card-related transactions, while continuing cash dollar sales at a faster pace. It also plans to expand bank branch coverage to include the far south of Libya, such as the city of Ghat and other areas.

Furthermore, the Central Bank explained that banks will be granted authority to process direct transfers for small traders of up to $100,000 every three months to all countries worldwide, in order to facilitate import activities, effective starting Wednesday.

The Central Bank of Libya announced in a statement to our source that it will begin today executing the sale of pending amounts allocated for personal purposes, which have been delayed since March. This comes in response to complaints from some citizens, as it was found that the largest share of these pending amounts was with Aman Bank.

The bank explained that this step is part of efforts to address backlogs and enhance the regular provision of foreign currency, ensuring smoother and more consistent service delivery for all purposes going forward.

The Central Bank of Libya announced in a statement to our source that it will issue instructions allowing the sale of US dollars for medical and study purposes within a specified limit, with particular focus on complex and high-cost medical cases.

The bank also explained that amounts ranging between $500 and $1,000 will be provided to travelers, to be collected at the airport through bank agencies or exchange companies, upon presentation of a boarding pass and travel destination details.

Former member of the Board of Directors of the Central Bank of Libya, M. Ghaith, said that demand for the US dollar in Libya is not an official demand that can be precisely measured, but rather a trader-driven demand linked to imports, whose real volume can only be determined two to three months after transactions are executed and import quantities become known.

Ghaith added that if the Central Bank were to inject all its reserves, the dollar would decline, then rise again within a week. He also noted that the presence of approximately three million foreign workers contributes to increasing demand for dollars, as they seek to obtain it at any cost, similar to traders.

He explained that imports should be conducted through banks in an official manner, whether via letters of credit or documentary payments. However, the current reality allows traders to import without proper oversight, with no inquiry into the sources of financing—something he said does not exist in any other country.

He pointed out that the observed decline is not in the official exchange rate, but in the parallel market rate, stressing that the official rate remains fixed, and therefore should not have a major impact as long as imports are conducted formally rather than through the current disorder.

He further noted that the parallel market (black market), as he described it, is indirectly fed by the Central Bank itself, particularly when dollars are provided through cards or cash allocations, as citizens often sell these currencies in the black market instead of using them for daily transactions.

Ghaith questioned whether the Central Bank would continue this policy, given the known capacity of local production, noting that exchange rate determination is not within their mandate.

He concluded that the solution lies in monitoring how dollars are used rather than only how they are distributed, explaining that continued cash dollar injections may help reduce the black market rate and limit smuggling, but will not eliminate the parallel market inside Libya, especially given the lack of clarity regarding how cards and cash are used by citizens.

The Central Bank of Libya confirmed to our source that Governor Naji Issa has issued instructions to all commercial banks to extend working hours today until 7 PM.

This is intended to enable citizens to receive their personal-use dollar allocations in cash.

The Central Bank of Libya confirmed exclusively to our source that it expects to sell more than $150 million today for personal purposes.

This is based on existing reservations, in addition to $600 million allocated to banks for letters of credit and transfers, with the process continuing regularly.

The Central Bank of Libya revealed exclusively to our source that banks will be ready from Sunday to sell U.S. dollars in cash. Around $500 million has been allocated to them—exceeding current reservations in the system—with approximately $300 million already prepared for sale on Sunday. Reservations will continue, and the Central Bank will cover them in cash in a continuous and organized manner.

The Central Bank explained that next week’s plan includes selling foreign currency in cash for personal purposes and covering card transactions, as well as rapidly selling $1 billion to banks to cover approved letters of credit and transfers. It will also accelerate the approval of new letters of credit and transfers worth $1 billion.

The Bank stredded that the goal is to ease pressure on demand at banks and meet market needs. Priority will be given to letters of credit for livestock, live animals, and sacrificial animals. The market is already witnessing a decline in the prices of some goods, and further noticeable decreases are expected before the end of May.

The Central Bank of Libya announced, in an exclusive statement to our source, that nearly $500 million has been delivered to commercial banks so far, with distribution operations set to continue through next week.

In addition, the bank is preparing to inject $1 billion in cash based on demand and existing reservations.

The Central Bank of Libya announced, exclusively to our source, an improvement in oil revenues and royalties collected during April. After deducting fuel expenses, revenues reached approximately $2.4 billion, with expectations to rise to $2.6 billion in May. This increase is expected to strengthen the bank’s ability to meet demand for foreign currency, avoid deficit financing, and maintain exchange rate stability below 7 dinars.

The bank also stated that $2.6 billion was injected during May to cover letters of credit, personal purposes, and transfers. This comes as part of a strategy aimed at reducing the exchange rate and overall price levels, while supporting market stability.

The Central Bank has exclusively revealed to our source that it has started delivering foreign currency allocations (cash dollars) to commercial banks.

The Central Bank confirmed that banks have already begun receiving these funds and transferring them to their vaults, in preparation for distribution to their customers (citizens) starting next Sunday, depending on the designated branches selected as distribution points across various regions of Libya.

Our source has obtained a copy of a directive issued by the Central Bank to commercial banks regarding the authorization to accept cash deposits and incoming external transfers in foreign currency, and to use them as follows:

Individuals and legal entities are allowed to use their foreign currency balances as follows:

• Conduct direct transfers in foreign currency between their domestic accounts through banking applications and all electronic payment methods.
• Execute direct international transfers for various purposes, including the import of goods and services, provided that the required documentation is submitted and in compliance with applicable regulations and procedures.
• Open letters of credit in accordance with the applicable controls and regulations.

The correspondence also states:

• Issuing and selling (Visa and Mastercard) cards, with deductions made from these foreign currency accounts.
• Carrying out fast transfers through Western Union or MoneyGram.
• Banks are permitted to retain foreign currency deposits in their vaults or deposit them in their accounts with the Central Bank of Libya. Account holders may also be granted interest upon request.

The Central Bank of Libya emphasized the need to comply with all issued circulars and instructions, particularly the implementation of due diligence, enhanced due diligence measures, and procedures to identify the beneficial owner. It also stressed the importance of giving this matter the highest priority and facilitating all procedures to enable customers to benefit from banking services in line with the above-mentioned instructions.

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.